I Yes, I have tried on the live CD – both Ubuntu and Xubuntu 10.04 and
same problem – says connected in network manager, but does not allow
browsing, pinging etc. I have tried setting the DNS servers in network
manager by hand but still no go.

The same procedure works fine on both Ubuntu and Xubuntu 9.10 on live CD
as well as when installed. Because it is my private business computer, I
have reinstalled Xubuntu 9.10, and will wait. I did try lsusb before and
after, and there was no change.

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Sierra 301 USB Telstra Prepaid
https://bugs.launchpad.net/bugs/578093
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