Looks like the solution to this bug somehow affected me. Freshly
installed Ubuntu 9.10, DHCP network connection initialized by
networkmanager, and my firm uses .local domain names in their true DNS
server.

Until I stop avahi-daemon, in-organization DNS names fail to resolve.

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Some ISPs have .local domain which disables avahi-daemon
https://bugs.launchpad.net/bugs/327362
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