Same Problem with a Solwise SAR 600e router provided 2 years ago by 
www.efhbroadband.com in the UK on ubuntu 7.10 (running of the live dvd).  It is 
also a problem in knoppix 5.1.1 (installed to the hard drive) where the 
changing of /etc/resolv.conf works untill rebooted.  
   I think the problem is because the router puts its self up as a DHCP server 
but on the configuration of the DHCP on the router it doesnt have an option to 
input a DNS server IP to allocate to the requesting computer and it ends up 
allocating itsself as a DNS server by mistake

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Wrong DNS Servers Assigned With Actiontec GT701-WG router
https://bugs.launchpad.net/bugs/12252
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