This sounds like it's a common problem upgrading 11.04, but I am having trouble finding a common solution, and one that will work for me.

I just applied updates via the update manager and now my wired network connection is down. I know Ubuntu network settings is the issue, because I have a dual-boot with Win 7 and my network/internet is fine on Win 7. I don't know too much about networking, so what can I do to trouble shoot this issue?

I can choose an older grub version, 2.6.38-8 instead of 2.6.38-11 and this does not resolve the issue.

Here is my lspci result:

00:00.0 Host bridge: ATI Technologies Inc RD890 Northbridge only single slot PCI-e GFX Hydra part (rev 02) 
00:02.0 PCI bridge: ATI Technologies Inc RD890 PCI to PCI bridge (PCI express gpp port B) 
00:04.0 PCI bridge: ATI Technologies Inc RD890 PCI to PCI bridge (PCI express gpp port D) 
00:05.0 PCI bridge: ATI Technologies Inc RD890 PCI to PCI bridge (PCI express gpp port E) 
00:06.0 PCI bridge: ATI Technologies Inc RD890 PCI to PCI bridge (PCI express gpp port F) 
00:07.0 PCI bridge: ATI Technologies Inc RD890 PCI to PCI bridge (PCI express gpp port G) 
00:09.0 PCI bridge: ATI Technologies Inc RD890 PCI to PCI bridge (PCI express gpp port H) 
00:0a.0 PCI bridge: ATI Technologies Inc RD890 PCI to PCI bridge (external gfx1 port A) 
00:11.0 SATA controller: ATI Technologies Inc SB7x0/SB8x0/SB9x0 SATA Controller [IDE mode] (rev 40) 
00:12.0 USB Controller: ATI Technologies Inc SB7x0/SB8x0/SB9x0 USB OHCI0 Controller
00:12.2 USB Controller: ATI Technologies Inc SB7x0/SB8x0/SB9x0 USB EHCI Controller 
00:13.0 USB Controller: ATI Technologies Inc SB7x0/SB8x0/SB9x0 USB OHCI0 Controller 
00:13.2 USB Controller: ATI Technologies Inc SB7x0/SB8x0/SB9x0 USB EHCI Controller 
00:14.0 SMBus: ATI Technologies Inc SBx00 SMBus Controller (rev 41) 
00:14.1 IDE interface: ATI Technologies Inc SB7x0/SB8x0/SB9x0 IDE Controller (rev 40)
00:14.2 Audio device: ATI Technologies Inc SBx00 Azalia (Intel HDA) (rev 40) 
00:14.3 ISA bridge: ATI Technologies Inc SB7x0/SB8x0/SB9x0 LPC host controller (rev 40) 
00:14.4 PCI bridge: ATI Technologies Inc SBx00 PCI to PCI Bridge (rev 40) 
00:14.5 USB Controller: ATI Technologies Inc SB7x0/SB8x0/SB9x0 USB OHCI2 Controller
00:15.0 PCI bridge: ATI Technologies Inc Device 43a0 
00:16.0 USB Controller: ATI Technologies Inc SB7x0/SB8x0/SB9x0 USB OHCI0 Controller 
00:16.2 USB Controller: ATI Technologies Inc SB7x0/SB8x0/SB9x0 USB EHCI Controller 
00:18.0 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor HyperTransport Configuration 
00:18.1 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor Address Map 
00:18.2 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor DRAM Controller 
00:18.3 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor Miscellaneous Control 
00:18.4 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor Link Control
01:00.0 VGA compatible controller: ATI Technologies Inc Juniper [Radeon HD 5700 Series] 
01:00.1 Audio device: ATI Technologies Inc Juniper HDMI Audio [Radeon HD 5700 Series] 
02:00.0 USB Controller: NEC Corporation uPD720200 USB
3.0 Host Controller (rev 03) 
05:00.0 Ethernet controller: Realtek Semiconductor Co., Ltd. RTL8111/8168B PCI Express Gigabit Ethernet controller (rev 03) 
06:00.0 Ethernet controller: Realtek Semiconductor Co., Ltd. RTL8111/8168B PCI Express Gigabit Ethernet controller (rev 03) 
07:00.0 SATA controller: JMicron Technology Corp. JMB362/JMB363 Serial ATA Controller (rev 03) 
07:00.1 IDE interface: JMicron Technology Corp. JMB362/JMB363 Serial ATA Controller (rev 03) 
08:0e.0 FireWire (IEEE 1394): Texas Instruments TSB43AB23 IEEE-1394a-2000 Controller (PHY/Link) 
09:00.0 SATA controller: JMicron Technology Corp. JMB362/JMB363 Serial ATA Controller (rev 02) 
09:00.1 IDE interface: JMicron Technology Corp. JMB362/JMB363 Serial ATA Controller (rev 02)

Here is my sudo lshw -class network:

*-network               
       description: Ethernet interface
       product: RTL8111/8168B PCI Express Gigabit Ethernet controller
       vendor: Realtek Semiconductor Co., Ltd.
       physical id: 0
       bus info: pci@0000:05:00.0
       logical name: eth0
       version: 03
       serial: 6c:f0:49:e7:72:e8
       size: 10Mbit/s
       capacity: 1Gbit/s
       width: 64 bits
       clock: 33MHz
       capabilities: pm msi pciexpress msix vpd bus_master cap_list rom ethernet physical tp mii 10bt 10bt-fd 100bt 100bt-fd 1000bt 1000bt-fd autonegotiation
       configuration: autonegotiation=on broadcast=yes driver=r8169 driverversion=2.3LK-NAPI duplex=half latency=0 link=no multicast=yes port=MII speed=10Mbit/s
       resources: irq:40 ioport:9e00(size=256) memory:fceff000-fcefffff memory:fcef8000-fcefbfff memory:fce00000-fce1ffff   *-network
       description: Ethernet interface
       product: RTL8111/8168B PCI Express Gigabit Ethernet controller
       vendor: Realtek Semiconductor Co., Ltd.
       physical id: 0
       bus info: pci@0000:06:00.0
       logical name: eth1
       version: 03
       serial: 6c:f0:49:e7:72:ea
       size: 10Mbit/s
       capacity: 1Gbit/s
       width: 64 bits
       clock: 33MHz
       capabilities: pm msi pciexpress msix vpd bus_master cap_list rom ethernet physical tp mii 10bt 10bt-fd 100bt 100bt-fd 1000bt 1000bt-fd autonegotiation
       configuration: autonegotiation=on broadcast=yes driver=r8169 driverversion=2.3LK-NAPI duplex=half latency=0 link=no multicast=yes port=MII speed=10Mbit/s
       resources: irq:47 ioport:8e00(size=256) memory:fddff000-fddfffff memory:fddf8000-fddfbfff memory:fdd00000-fdd1ffff