This bug was fixed in the package vagrant - 1.0.3-1ubuntu1

---------------
vagrant (1.0.3-1ubuntu1) raring; urgency=low

  * Detect Ubuntu's dns proxy (listening on 127.0.1.1) and disables
    internal dns proxying. [GH-1176]
    (LP: #1101914)
 -- Chris Johnston <[email protected]>   Sun, 20 Jan 2013 13:13:13 -0500

** Changed in: vagrant (Ubuntu)
       Status: Confirmed => Fix Released

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https://bugs.launchpad.net/bugs/1101914

Title:
  DNS resolution fails  on Ubuntu 12.10

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