I can reproduce this on clean install of Kubuntu 10.04LTS, although it's
within a VM (in kvm) so the interface is virtual. Network connectivity
is there, everything works as expected except it can't be managed via
NM.

I didn't need to reboot, but I restarted the service:
sudo service network-manager restart


** Changed in: network-manager (Ubuntu)
       Status: New => Confirmed

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[kubuntu] NetworkManager default unmanaged
https://bugs.launchpad.net/bugs/465591
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