This has been fixed in Jaunty with today's network manager upload:

0.7.1~rc4-0ubuntu1
Published in jaunty-release 8 hours ago

network-manager (0.7.1~rc4-0ubuntu1) jaunty; urgency=low

  * upstream release 0.7.1 rc4
    + http://git.freedesktop.org/NetworkManager/NetworkManager/
    + NETWORKMANAGER_0_7 (branch)
      - dont send AT commands to serial consoles that are not using a modem 
driver
      - nozomi probing (LP: #351803)
      - allow users with polkit authorization to view/edit secrets for system 
connections
      - fix crash that might be LP: #319918
  * allow connection sharing out of the box; we add dnsmasq-base to Recommends:
    - update control

 -- Alexander Sack < a...@ubuntu.com>   Mon, 06 Apr 2009 12:43:31 +0200

** Changed in: network-manager (Ubuntu)
       Status: Triaged => Fix Released

-- 
[intrepid] network-manager should recommend or suggest dnsmasq
https://bugs.launchpad.net/bugs/269963
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