Edubuntu networking problem

[Ralph Pichie]

New installation of Edubuntu 11.04 with LTSP on AMD Athlon

The Ethernet connection works fine when running from DVD, but not
after installation.
Network Manager cannot create a working connection.
To connect, the user must run dhclient with root privileges.

Below is the current content of /etc/network/interfaces

auto lo
iface lo inet loopback

auto eth0
iface eth0 inet dhcp
  address 192.168.0.254
  netmask 255.255.255.0

Could the installation of Linux Terminal Server Project have caused
this? During the installation, I opted to include LTSP and there was a
list with the default option of eth0, the only network device I had
then.

I presume that as a terminal server it would need a static address,
but I'm not an expert in that - yet. If that is the problem, how do I
correct it? Do I add another network card and make LTSP use that so
the other can be set to use DHCP and start at boot? Or do I remove
LTSP and hope that will solve the problem? Do I start yet another wipe
and install, this time without LTSP?

Ralph