I have the same problem.

I have a Macintosh with Parallells that worked fine in 6.10. In UBuntu 7 the 
above problem started to appear.
When I boot Ubuntu, the network is never detected. I have to manually choose 
network and it then works. I get the message "Connection eastablished". After a 
short while I get "Network service discovery disabled
Your current network has a .local domain, which is no recommended and 
incompatible with the Avahi network service discovery. The service has been 
disabled."
For some more details, please see http://www.prifre.com/macintosh/

BTW:
 lspci
00:02.0 VGA compatible controller: Unknown device aaaa:1131
00:03.0 Bridge: Unknown device aaaa:1112
00:05.0 Ethernet controller: Realtek Semiconductor Co., Ltd. RTL-8029(AS)
00:1e.0 Host bridge: Intel Corporation 82815 815 Chipset Host Bridge and Memory 
Controller Hub (rev 02)
00:1f.0 ISA bridge: Intel Corporation 82801BA ISA Bridge (LPC) (rev 08)
00:1f.1 IDE interface: Intel Corporation 82801BA IDE U100
00:1f.5 Multimedia audio controller: Intel Corporation 82801BA/BAM AC'97 Audio 
(rev 02)

/etc/network/interfaces

auto lo
iface lo inet loopback

auto eth0
iface eth0 inet dhcp

auto eth1
iface eth1 inet dhcp

auto eth2
iface eth2 inet dhcp

auto ath0
iface ath0 inet dhcp

auto wlan0
iface wlan0 inet dhcp

-- 
Wireless card not detected on PC restart (in Feisty)
https://bugs.launchpad.net/bugs/112038
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