Just for info: So I rang Virgin to ask them to turn off their ANES for me (Advanced Network Error Search). 2 phone calls, 57 minutes and 7 advisors later they managed to find someone who knew what I was talking about. That's why I don't phone them unless I see no option.
Now if I run with their default DNS server I still get the same entry in xauth list ! Prepending the opendns server removes it for me. Thanks for all the help and insights. High time to close this thread. :)
