I experienced the same issue.

I decided to investigate, and found that the IP address was in the right
subnet, the DNS servers were correct, so I investigated the route and
found this:

On system start my routing table looks like this:
64.230.197.93   *               255.255.255.255 UH    0      0        0 ppp0
192.168.0.0     *               255.255.255.0   U     0      0        0 eth0
link-local      *               255.255.0.0     U     1000   0        0 eth0

there's no default route. This is what it looks like after poff && pon 
dsl-provider:
64.230.197.93   *               255.255.255.255 UH    0      0        0 ppp0
192.168.0.0     *               255.255.255.0   U     0      0        0 eth0
link-local      *               255.255.0.0     U     1000   0        0 eth0
default         *               0.0.0.0         U     0      0        0 ppp0

Trying to figure out how ubuntu starts it's ppp connection led me to
/etc/ppp/pppoe_on_boot but I couldn't find a script that called it.
Perhaps this is an issue with avahi or another package that modifies the
kernel routing table. Either way, I wasn't able to find a cause for the
missing default route.

Best,
Hugo

-- 
PPPoE internet connection fails after an update for Feisty Fawn Beta
https://bugs.launchpad.net/bugs/97451
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