I also want to confirm that this is a serious issue.

There is a number of problems following the simple fact that network
manager does not see dial-up connections. Not only the ones Petri
Pennanen mentions but also another really annoying issue:

network-manager does not let me start my VPN connection when I am
"offline" (when I am really online with my huawei e220 modem). The VPN
is just greyed out! This is of course a silly problem because I only set
up the VPN so that my clients can access their data from outside - and
roadwarriors nowadays use 3g modems and not wlan hotspots!

I am sure there are even more issues that the ones mentioned. There
really should be a way to let gnome (or network-manager) know my
online/offline status when on dial-up. Even if network-manager 0.7 does
not make it into hardy there should be at least some kind of
workaround...

-- 
network manager gives couldn't activate dialup service warning
https://bugs.launchpad.net/bugs/147119
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