/etc/resolv.conf containing 127.0.0.1 was correct, provided you have a
local nameserver running that listens at IP address 127.0.0.1.
In Ubuntu 12.10, the dnsmasq process controlled by NetworkManager
listens at 127.0.1.1, not at 127.0.0.1, so it wasn't NetworkManager that
registered 127.0.0.1 with resolvconf.
My guess is that it was bind9 that did that, and that your problem was
bug #933723.
For background information please read the following blog posting.
https://www.stgraber.org/2012/02/24/dns-in-ubuntu-12-04/
** Changed in: network-manager (Ubuntu)
Status: New => Incomplete
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https://bugs.launchpad.net/bugs/1098152
Title:
DNS resolve failed after upgrade from 12.04 to 12.10
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