Just make sure that /etc/resolv.conf has line "nameserver 127.0.0.1" in it, nothing else. You need to be root to edit it.

Easiest way to write to that line to file is to type as root in xterm "echo nameserver 127.0.0.1 > /etc/resolv.conf"

For getting root access, see https://wiki.maemo.org/Root_access