Posting on ubuntuforums.org gave me the fix.

http://ubuntuforums.org/showthread.php?p=3663262

Marc gave the following information:

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NetworkManager left my Ultra5 with Gutsy completely unusable, hogging all of 
it's scarce CPU ressources. With synaptic, I removed packages network-manager 
and network-manager-gnome.

Removing Network-Manager like this is probably only quick&dirty fix; I
imagine that the proper solution to this problem has to do with
reconfiguring/rearranging some udev or dbus/hal related scripts - but I
wanted the network back on my U5 (as in: I want it now!) and that was a
way to do it.

In the end, I had to edit /etc/network/interfaces
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So it seems like networkmanager has some issues running on the SPARC
platform

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Ultra60 SPARC Ethernet issue
https://bugs.launchpad.net/bugs/158323
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