In the Network Manager source code in
src/NetworkManagerPolicy.c
The issue is in function "update_etc_hosts". If Network Manager sees
that /etc/hosts is empty it puts an invalid /etc/hosts .. it's on line
318 of the network manager in karmic (0.8).
When this gets run I'm trying to figure out. But this is where Network
Manger is generating the invalid /etc/hosts file
** Changed in: network-manager (Ubuntu)
Status: Incomplete => New
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oem-config incorrectly setting up /etc/hosts
https://bugs.launchpad.net/bugs/471498
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