Under Ubuntu it appears the Network Manager ignores the setting for "Address Only" in the GUI and will not honor your entries for DNS servers. This is very annoying is you switch networks a lot. Example, wireless connection, wired connection, VPN... etc.
Instead of your DNS settings you put in the GUI being honored, you keep getting "nameserver 127.0.0.1" each time you switch.
THE SHORT ANSWER
1- Comment out "dns=dnsmasq" from "/etc/NetworkManager/NetworkManager.conf"
2- sudo restart network-manager
THE LONG ANSWER
SEE this thread-> http://askubuntu.com/questions/201603/how-do-i-edit-my-resolv-conf-file-to-fix-wrong-dns-problem