+++ This bug was initially created as a clone of Bug #702112 +++

Description of problem:
I'm using NAT networking for my virtual guests (KVM). In the XML file I have defined the example.com domain and a host which will be assigned static IP address and predefined hostname. The config looks like this:

<network>
  <name>default</name>
  <uuid>432d8cf4-16a3-4ff1-af5d-02f115fbc516</uuid>
  <forward mode='nat'/>
  <bridge name='virbr0' stp='on' delay='0' />
  <domain name='example.com'/>
  <ip address='192.168.122.1' netmask='255.255.255.0'>
    <dhcp>
      <range start='192.168.122.200' end='192.168.122.254' />
      <host mac='52:54:00:bf:ae:e2' name='tester1.example.com' ip='192.168.122.12' />
      <bootp file='pxelinux.0' server='192.168.122.11' />
    </dhcp>
  </ip>
</network>


When I create new guest and run the anaconda installer by default it uses DHCP. The result is that IP address is assigned correctly but DNS is not. 

Version-Release number of selected component (if applicable):
anaconda in RHEL 6.0 GA
libvirt-0.8.1-27.el6_0.5.x86_64
dnsmasq-2.48-4.el6.x86_64

How reproducible:
always

Steps to Reproduce:
1. Cofigure NAT networking using the domain and host tags
2. Assign FQDN for your guest system
3. Install the guest using anaconda with all the default options. Specify the correct MAC address for the network interface.

  
Actual results:
During stage2 IP address is assigned but /etc/resolv.conf looks like:
search example.com

no trace of nameserver configuration. All DNS requests fail. 

Expected results:
DNS is working.

Additional info:
This happens when I boot the guest using PXE (the guest is part of local beaker lab setup)

If I select to provision RHEL 5.6 from beaker on the same host then /etc/resolv.conf looks like:

search example.com
nameserver 192.168.122.1


In the same environment if I create a new guest with RHEL 6 with a different MAC address it will get a dynamic IP and resolv.conf in stage2 looks like:

domain example.com
search example.com
nameserver 192.168.122.1