Comment 136 for bug 191889

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James Ward (jamesward) wrote : Re: [MASTER] Ubuntu's new "Offline Mode" feature cannot properly detect when there is a valid network available for use in many circumstances

One other part of this bug which has not been mentioned here is that when you connect via dial-up you can't use NetworkManager to setup a VPN.

Also, I've heard that NetworkManager 0.7 fixes these problems.