Comment 36 for bug 327362

I have this bug in Ubuntu 9.10.

I believe it is somehow related to network-manager, and this is why:

I installed Ubuntu Minimal with gdm, but instead of installing network-manager, I installed wicd.
and avahi worked great!
but then I needed to set up broadband connection, and since wicd doesn't have the option, I replaced it with network-manager.

and at this very point avahi stopped working with the message about .local.

getting back to wicd did not solve the problem. so the thing must be in some config files that are being altered during a network-manager installation.