I can confirm this bug on 7.04 with kernel 2.6.20-15-generic.

One difference I notice from previous posts is that on boot the network
gets up on 1000Mb/s and works fine until ifdown. After ifup the link is
at 100Mb/s.

On forcing eth0 to 1000 with ethtool makes these messages appear in 
/var/log/messages:
Jun 28 13:59:40 husk kernel: [19933.630813] e1000: eth0: e1000_watchdog: NIC 
Link is Up 1000 Mbps Full Duplex
Jun 28 13:59:40 husk kernel: [19933.630915] ADDRCONF(NETDEV_CHANGE): eth0: link 
becomes ready
Jun 28 13:59:43 husk kernel: [19936.197642] e1000: eth0: e1000_watchdog: NIC 
Link is Down
Jun 28 13:59:46 husk kernel: [19939.276850] e1000: eth0: e1000_watchdog: NIC 
Link is Up 100 Mbps Full Duplex
Jun 28 13:59:46 husk kernel: [19939.276855] e1000: eth0: e1000_watchdog: 10/100 
speed: disabling TSO

lspci for ethernet controller:
00:19.0 Ethernet controller: Intel Corporation 82566DM Gigabit Network 
Connection (rev 02)

The affected system is a HP Compaq dc7700 desktop. A identical system
with Fedora Core 6 with kernel 2.6.19 is also experiencing this bug. I
guess this means this bug is in upstream.

Rasjid's sollution doesn't seem to help.

-- 
Intel Gigabit network adapter e1000 fails to connect at gigabit speed, is 
"geared down" to only 100 Mbps
https://bugs.launchpad.net/bugs/86437
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