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  1. Running dig/ping on any domain, give me correct ip.
  2. When I try to browse google.com in browser it does not work.
  3. When I pick the IP (via ping) and use it in browser, website open via IP fine. But further work does not work, because of name resolution problem.

DO NOT works fine on :

  1. Ubuntu 9.10 installed in Virtual Box over Windows.
  2. Ubuntu 10.10 installed in Virtual Box over Windows.
  3. Ubuntu 9.10 installed on laptop.

But Internet works fine on windows vista installed on laptop.

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Perhaps you have a proxy configured for the browser, so that name resolution is deferred to the proxy, which is somewhere else?

dig uses DNS directly to find answers, so doesn't tell you how the system is configured. ping should be using the system configuration, typically via /etc/resolv.conf -- you should check that file to be sure that there's at least one "nameserver" entry in that. If not, add something and then debug why you're ending up without nameservers configured.

Good fallbacks to use are the Google Public DNS servers, with memorable IP addresses:

nameserver 8.8.8.8
nameserver 8.8.4.4

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