I have similar issues.  I've had issues with network-manager and avahi-
daemon since I installed some opensync  and bluetooth packages to sync
my pda.   I think it started because it tried to add my bluetooth dongle
as eth1 and use avahi-daemon to set up local dns maybe?  thats just a
guess because i don't really understand what changes were made.


But the only way I could get it to reliably work is to turn off nm-applet auto 
start in xfce4-session-settings.
Then manually configure my static IP address and nameserver.   I also changed 
the avahi setting to 0 below.

Don't know why or how this fixed my issue but it did.


~$ cat /etc/network/interfaces
       auto lo eth0
       iface lo inet loopback

       iface eth0 inet static
            address 152.19.35.137
            netmask 255.255.0.0
            gateway 152.19.1.1


~$ cat /etc/resolv.conf 
nameserver 152.19.4.1

~$ cat /etc/default/avahi-daemon 
# 1 = Try to detect unicast dns servers that serve .local and disable avahi in
# that case, 0 = Don't try to detect .local unicast dns servers, can cause
# troubles on misconfigured networks
AVAHI_DAEMON_DETECT_LOCAL=0

-- 
NetworkManager Disables Eth0
https://bugs.launchpad.net/bugs/293228
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