Comment 8 for bug 924511

Hmm, even on Edubuntu using the same example as above I couldn't reproduce the issue, the dialog seems to behave as expected here.

Jeff: Could you try with a recent image (beta1) and confirm it still happens for you?

A change in ubi-usersetup that went in a bit before beta1 fixes a bunch of cases where the local DNS server gives IP addresses for pretty much any hostname, maybe that same fix fixed your problem?