I just updated F18 using yum. The updates included NetworkManager-0.9.7.997-2.fc18.x86_64. This broke DNS client services on my machine, i.e. I couldn' t browse, email, or do lookups on my main machine, even though other local machines all continue to work. After some head-scratching the problem appears to be that /etc/resolv.conf has been changed to have 127.0.0.1 as the (only) nameserver. Since I' m not running bind or anything similar, this means that DNS is effectively banjaxed.
My resolv.conf is very simple (one entry, pointing to my router, which is configured to point upstream correctly).
Manually editing resolv.conf fixed the issue temporarily, but I imaginethat NM will shortly intervene to undo the change.
Just thought I'd alert people to this before they too are bitten. I'm posting this from a VM which luckily has its own resolver.
poc
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