I'm sorry to say but this is actually 1/2 user error and 1/2 xen
logistics. Xen while creating the briding for DomU's, renames eth0 to
peth0.  You can verify this by running "chmod -x /etc/init.d/xend ;
reboot" and verifying that iproute works as you expect it to.

Please see http://wiki.xensource.com/xenwiki/XenNetworking for a more
concise description.

** Changed in: iproute (Ubuntu)
       Status: Confirmed => Invalid

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[hardy] "ip" broken
https://bugs.launchpad.net/bugs/192294
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