Installed the latest network-manager package (0.7) and what I managed to
get static ip work, after a reboot. The system boots up with the static
IP, without the need to login, which is the behaviour I like (compared
with other distros). nm-applet however reports "No network connection"
even though network is fully working.  Firefox will launch in "Offline
Mode" as well, I'm not sure what other apps will say that I've got no
network, as I feel the strong urge to go back to 7.10.

I'm not sure what you mean by network manager not supporting static IP
when 1) the same steps worked before and 2) is everyone expected to use
DHCP nowadays?

I'm running a service which I need to be mapped from the router, is no
one running ubuntu doing such things anymore?

>> It has never been possible to use a network card configured
statically with NetworkManager. If you set it static in
/etc/network/interfaces then NM just doesn't see it.

Don't see it does not mean to kill network altogether.

-- 
Can't use static ip address with network-manager (and thus no VPN connections 
menu for static users)
https://bugs.launchpad.net/bugs/5364
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