Did you solve this problem? I'm experiencing a similar problem with DNS..
Unfortunately, no! What I did was simply downgraded it to RC1 which was known to be working alright without DNS problem. All the later candidate releases appear troubled to me. If the problem is not solved, I am basically stuck with RC1
I have tried changing MTU and MSS settings without success.
If the use of PPPoE maybe the cause of the DNS problem, I was wondering why it works with RC1 and also why MT would not help general users by integrating the fix/correct settings to allow for this in their software? It would make my day if RC5 changelog has something like this:
*) fixed DNS problem for PPPoE users