DNS fails due to wrong local domain

[Guy Taylor]

After connecting to an OpenVPN server no DNS is available.
Network-Manager's Info panel has three DNS servers listed under the VPN tab but in syslog there is "dnsmasq[3945]: warning: no upstream servers configured" (full log attached).
This VPN config was functional under 11.10 and a cisco VPN works fine under 12.04.

guy@Other:~$ host google.com
google.com has address 173.194.41.133
google.com has address 173.194.41.134
...
...
...

{start OpenVPN via NM}

guy@Other:~$ host google.com
Host google.com.ed.ac.uk not found: 5(REFUSED)

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: network-manager-openvpn 0.9.4.0-0ubuntu1
ProcVersionSignature: Ubuntu 3.2.0-24.37-generic-pae 3.2.14
Uname: Linux 3.2.0-24-generic-pae i686
ApportVersion: 2.0.1-0ubuntu7
Architecture: i386
Date: Thu May 3 22:56:15 2012
EcryptfsInUse: Yes
InstallationMedia: Ubuntu 12.04 LTS "Precise Pangolin" - Alpha i386 (20120201.1)
ProcEnviron:
 LANGUAGE=en_GB:en
 TERM=xterm
 PATH=(custom, no user)
 LANG=en_GB.UTF-8
 SHELL=/bin/bash
SourcePackage: network-manager-openvpn
UpgradeStatus: No upgrade log present (probably fresh install)

[Launchpad Janitor (janitor)]

Status changed to 'Confirmed' because the bug affects multiple users.

[Thomas Hood (jdthood)]

When the malfunction is occurring, what's in /etc/resolv.conf and what is the output of `nm-tool`?

Try commenting out "dns=dnsmasq" in /etc/NetworkManager/NetworkManager.conf and rebooting.

[Jean-Pierre Rupp (xenog)]

The suggestion on #3 works fine, but it involves disabling the local DNS cache provided by DNSMasq.

[Thomas Hood (jdthood)]

By default the dnsmasq instance started by NetworkManager doesn't do any caching.