> but having BIND server installed shouldn't be affecting the
> local DNS lookups, it's a stand-alone bind server...

Yep, that sounds like my original guess:

> probably a local DNS server that's installed and misconfigured
> such that it's talking to resolvconf when it shouldn't be.

So this sounds like bug #996088, except you say that this is a fresh
install of 12.04 rather than an upgrade.

Perhaps virtualmin is misconfiguring bind9?

Anyway, not a resolvconf bug then; possibly a bind9 bug; reassigning.

** Package changed: resolvconf (Ubuntu) => bind9 (Ubuntu)

** Changed in: bind9 (Ubuntu)
       Status: Incomplete => New

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https://bugs.launchpad.net/bugs/1045616

Title:
  DHCP server handing out DNS server addresses but DHCP client does not
  write these to resolv.conf

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