If you're accessing the Internet through a little router that's plugged into
your DSL modem then the entry in your
resolv.conf is probably fine. Maybe
check the router's settings and see if there's something like "DNS Relay".
If there is, make sure it's enabled.
The router acts also as a modem. As to DNS Relay, I've never seen the like. I shall attempt to check.
What happens when you access the network via a wire? Same thing? Or does
everything work fine?
Using an ethernet wire and pppoeconf, every thing works exactly as it should. I know this because when I was downloading the driver for the WiFi, this is how I connected.