Ok, now I'm using Jaunty I can provide more information and a work-
around that renders this bug fixed for me...

I think the DNS problem is actually with 3 Mobile UK's wobbly 3G network
rather than a problem with any component within Jaunty. I say this
because I've recently moved house and my Windows-using housemates borrow
the connection occasionally and do sometimes have broken DNS. I'd never
had that problem in Windows, but then I've only connected under Windows
about a dozen times.

So, the work around comes from the fact that PPP in Jaunty does honour
the manually entered DNS servers, whereas Intrepid always seemed to
ignore them. I fixed this issue by bypassing 3 Mobile's DNS servers and
using OpenDNS instead - like so:

1) Right click the network manager icon in the system tray, choose "Edit 
connections"
2) Go to the "Mobile Broadband" tab and edit the relevant connection
3) Go to 3rd "IPv4 Settings" tab, change "Method" drop-down to "Automatic (PPP) 
addresses only"
4) Enter "208.67.222.222, 208.67.220.220" in the "DNS Servers" box, click 
"Apply" and then "Close"

The above means my connection always has good DNS, so this bug/problem
is indeed fixable.

** Changed in: ppp (Ubuntu)
       Status: Confirmed => Invalid

-- 
DNS not set during PPP connection
https://bugs.launchpad.net/bugs/331322
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