This bug was fixed in the package casper - 1.255

---------------
casper (1.255) natty; urgency=low

  [ Evan Dandrea ]
  * Don't disable the free space notifier if using persistent storage.

  [ Daniel Manrique ]
  * scripts/casper-bottom/23networking: Strip quotes from DNSDOMAIN as
    returned by ipconfig, and sanitize the domain entry to ensure the
    generated /etc/resolv.conf is formatted correctly (LP: #709364).
 -- Colin Watson <[email protected]>   Tue, 01 Feb 2011 11:05:13 +0000

** Changed in: casper (Ubuntu)
       Status: Triaged => Fix Released

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https://bugs.launchpad.net/bugs/709364

Title:
  Invalid domain in /etc/resolv.conf on network install with
  NetworkManager disabled

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