Comment 2 for bug 297796

Here are my Hardy /etc/resolve.conf settings running under VirtualBox for comparison (this works)

Before VPN connection

Kernel IP routing table
Destination Gateway Genmask Flags Metric Ref Use Iface
10.0.2.0 * 255.255.255.0 U 0 0 0 eth0
link-local * 255.255.0.0 U 1000 0 0 eth0
default 10.0.2.2 0.0.0.0 UG 0 0 0 eth0

/etc/resolv.conf
### BEGIN INFO
#
# Modified_by: NetworkManager
# Process: /usr/bin/NetworkManager
# Process_id: 4191
#
### END INFO

search home

nameserver 10.0.2.3

After VPNC connection

Kernel IP routing table
Destination Gateway Genmask Flags Metric Ref Use Iface
86.12.88.3 10.0.2.2 255.255.255.255 UGH 0 0 0 eth0
10.0.2.0 * 255.255.255.0 U 0 0 0 eth0
link-local * 255.255.0.0 U 1000 0 0 eth0
default * 0.0.0.0 U 0 0 0 tun0

/etc/resolv.conf
### BEGIN INFO
#
# Modified_by: NetworkManager
# Process: /usr/bin/NetworkManager
# Process_id: 4191
#
### END INFO

search central.luton

nameserver 10.66.5.40

Hope this helps