Hi

.
This stuff is good!
I am using named as a part of my Internet Connection Sharing - it's my DNS server so I already have all the tools needed. What I did was:
Edited this file:
/etc/resolvconf/resolv.conf.d/base
so it looks like this:
[root@icsserver andrzejl]# cat /etc/resolvconf/resolv.conf.d/base
nameserver 127.0.0.1
No empty lines at the end.
and then I have edited this file:
/etc/resolvconf/resolv.conf.d/tail
so it looks like this:
[root@icsserver andrzejl]# cat /etc/resolvconf/resolv.conf.d/tail
nameserver 208.67.222.222
nameserver 208.67.220.220
Again - no empty lines at the end.
So now when I ran:
service network restart
and my connection got re-established:
[root@icsserver andrzejl]# service network restart
Shutting down interface eth1: [ OK ]
Shutting down interface ppp0: [ OK ]
Shutting down loopback interface: [ OK ]
Disabling IPv4 packet forwarding: [ OK ]
Bringing up loopback interface: [ OK ]
Enabling IPv4 packet forwarding [ OK ]
Configuring wireless regulatory domain [ OK ]
Bringing up interface eth1: [ OK ]
Bringing up interface ppp0: [ OK ]
[root@icsserver andrzejl]#
I am getting this in my:
/etc/resolv.conf
[root@icsserver andrzejl]# cat /etc/resolv.conf
# Dynamic resolv.conf(5) file for glibc resolver(3) generated by resolvconf(

# DO NOT EDIT THIS FILE BY HAND -- YOUR CHANGES WILL BE OVERWRITTEN
nameserver 127.0.0.1
nameserver 208.67.222.222
nameserver 208.67.220.220
Why this way? Because I am using 3G USB Dongle from three.ie and I don't get to setup my own DNS while connecting. The only way to setup my own DNS for 3G network is to override it with the resolvconf daemon

.
BUT that's not the point

!
This is the point

.
First shot:
[andrzejl@icsserver ~]$ dig pclinuxos.com
; <<>> DiG 9.8.1-P1 <<>> pclinuxos.com
;; global options: +cmd
;; Got answer:
;; ->>HEADER<<- opcode: QUERY, status: NOERROR, id: 10203
;; flags: qr rd ra; QUERY: 1, ANSWER: 1, AUTHORITY: 4, ADDITIONAL: 0
...
;; Query time: 265 msec
...
;; SERVER: 127.0.0.1#53(127.0.0.1)
;; WHEN: Sat Dec 10 21:41:28 2011
;; MSG SIZE rcvd: 131
[andrzejl@icsserver ~]$ dig pclinuxos.com
; <<>> DiG 9.8.1-P1 <<>> pclinuxos.com
;; global options: +cmd
;; Got answer:
;; ->>HEADER<<- opcode: QUERY, status: NOERROR, id: 8272
;; flags: qr rd ra; QUERY: 1, ANSWER: 1, AUTHORITY: 4, ADDITIONAL: 2
...
;; Query time: 1 msec
...
;; SERVER: 127.0.0.1#53(127.0.0.1)
;; WHEN: Sat Dec 10 21:41:29 2011
;; MSG SIZE rcvd: 163
Nice difference and the sites are loading slightly faster!

.
Thanks Janasx1!