Comment 18 for bug 998712

I'm havin a very simular issue with the new DNS setup in 12.04 on my laptop. I run a server at home which runs bind. The server is setup correctly, all my machines with 11.04 installed work as expected, but the machines I have upgraded to 12.04 have issues. My server provides name resolution for machines spread out in my house. A working /etc/resolve.conf for 11.04 machines looks like:

# Generated by NetworkManager
domain home.lan
search home.lan
nameserver 192.168.99.2 #my bind server (Provide DNS for local IP's 192.168.99.x )
nameserver 24.177.176.38 #dns server provided by ISP (Provide DNS for Internet IP's)
nameserver 97.81.22.195 #dns server provided by ISP (Provide DNS for Internet IP's)

My new machines with 12.04 have a /etc/resolv.conf that looks like:

# Dynamic resolv.conf(5) file for glibc resolver(3) generated by resolvconf(8)
# DO NOT EDIT THIS FILE BY HAND -- YOUR CHANGES WILL BE OVERWRITTEN
nameserver 127.0.0.1
search home.lan

/run/nm-dns-dnsmasq.conf looks like:

server=192.168.99.2
server=24.177.176.38
server=97.81.22.195

All DNS request for outside IP's (none 192.168.x.x) work. My server has the ip 192.168.99.2 with a FDN of linux.home.lan. If i do "ping linux" this fails, if i do "ping linux.home.lan" this works.

if I change my /etc/resolv.conf to the following:

# Dynamic resolv.conf(5) file for glibc resolver(3) generated by resolvconf(8)
# DO NOT EDIT THIS FILE BY HAND -- YOUR CHANGES WILL BE OVERWRITTEN
nameserver 127.0.0.1
nameserver 192.168.99.2
search home.lan

I'm back in buisness. Let me know what else I can do to help resolv (no pun intended :) this issue