Weird, since the whole idea is to very much avoid messing with
/etc/hosts; however, the first pass when switching between the two
versions may have caused this.

Also note that your hostname shouldn't be against 127.0.0.1, it is set
by the installer to 127.0.1.1.

If you set it back correctly, does NM keep modifying the entry?

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https://bugs.launchpad.net/bugs/729091

Title:
  0.8.1+git.20100810t184654.ab580f4-0ubuntu2.1 breaks my /etc/hosts by
  attaching hostname to localhost

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