Same problem after upgrading from 8.04 to 8.10 yesterday. Disabling
ipmasq fixed my issue.

GUH....what a waste of time.

People are runing into this issue with ubuntu on the forums a lot, but
no proper answers are given...i'm going to run around and post the
solution.

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[jaunty] network problem
https://bugs.launchpad.net/bugs/315370
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