I had the same problem in Jaunty (Eplus in Germany with NetworkManager
and Sierra MC8775 Modem). On the first dial i don't get DNS. After
disconnect and reconnect it worked. I have changed ipcp-max-failure to
30 in /etc/ppp/options. This is a workaround witch works for me.

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DNS not set during PPP connection
https://bugs.launchpad.net/bugs/331322
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