I have the same problem (Ubuntu 8.10) my provider is Comcel in Colombia.
Info:
APN: internet.comcel.com.co
DNS. 198.228.90.211
username: comcelweb
password: comcelweb
I added:
<!-- Colombia -->
<country code="co">
<provider>
<name>Comcel</name>
<gsm>
<apn>internet.comcel.com.co</apn>
</gsm>
<username>comcelweb</username>
<password>comcelweb</password>
<dns>198.228.90.211</dns>
</provider>
</country>
to serviceproviders.xml but the problem persists
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DNS PROBLEMS
https://bugs.launchpad.net/bugs/347718
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