this was fixed in jaunty.
** Changed in: network-manager (Ubuntu)
Status: Triaged => Fix Released
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NM does not honour manual IP4Settings for ppp connections [(3G/pppoe) NM
doesn't overwrite the bogus values it received from ppp even if you set
Automatic (addresses only) in the ip4setting tab in connection editor]
https://bugs.launchpad.net/bugs/303165
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