Check out http://www.multitech.net/developer/forums/topic/mlinux-resolv-conf-issue/#post-9878.
As Brandon pointed out, /etc/resolv.conf is configured by default as a “volatile” file and this scheme works well when using DHCP or when using PPP (cellular). A simple workaround for static configuration is to put something like the following in your /etc/network/interfaces file for eth0.
post-up echo “nameserver 8.8.8.8″ > /etc/resolv.conf