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[Mathieu Trudel-Lapierre <mathieu.tl@xxxxxxxxx>]

Are you using the same process on both systems?

Note the errors here:
Sep 13 14:16:30 kristopher-LT21 NetworkManager[503]: <info> Executing: /sbin/iptables --table filter --insert FORWARD --destination 10.42.43.0/255.255.255.0 --out-interface eth0 --match state --state ESTABLISHED,RELATED --jump ACCEPT
Sep 13 14:16:30 kristopher-LT21 NetworkManager[503]: <info> Executing: /sbin/iptables --table nat --insert POSTROUTING --source 10.42.43.0/255.255.255.0 --destination ! 10.42.43.0/255.255.255.0 --jump MASQUERADE
Sep 13 14:16:30 kristopher-LT21 NetworkManager[503]: <info> Starting dnsmasq...
Sep 13 14:16:30 kristopher-LT21 NetworkManager[503]: <info> (eth0): device state change: ip-config -> activated (reason 'none') [70 100 0]
Sep 13 14:16:30 kristopher-LT21 NetworkManager[503]: <info> Activation (eth0) successful, device activated.
Sep 13 14:16:30 kristopher-LT21 NetworkManager[503]: <info> Activation (eth0) Stage 5 of 5 (IP Configure Commit) complete.
Sep 13 14:16:30 kristopher-LT21 NetworkManager[503]: <info> Activation (eth0) Stage 4 of 5 (IP4 Configure Get) complete.
Sep 13 14:16:30 kristopher-LT21 NetworkManager[503]: <warn> dnsmasq exited with error: Network access problem (address in use; permissions; etc) (2)
Sep 13 14:16:30 kristopher-LT21 NetworkManager[503]: <info> (eth0): device state change: activated -> failed (reason 'sharing-start-failed') [100 120 18

The last two indicate dnsmasq has failed to start because the IP was
already in use. This is likely because on the same link, another system
is already configured to share the connection or there is an issue with
the network's router configuration.

Please verify your settings or provide additional information as to how
your network is configured, how many systems are connected to the wired
network (including things behind a switch or router), and how the other
systems are configured.

Note that ICS uses the 10.42.43.0 range to setup connection sharing.
This is hard-coded.

** Changed in: network-manager (Ubuntu)
       Status: New => Incomplete

-- 
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https://bugs.launchpad.net/bugs/849297

Title:
  ICS - Internet Connection Sharing

Status in “network-manager” package in Ubuntu:
  Incomplete

Bug description:
  OS:
  Ubuntu 11.10 beta 1

  Brief Description:
  11.04 worked well. With the 11.10 beta 1 release I encountered issues with ICS via lan eth0 when attempting to share my wifi connection to a desktop. Both use Ubuntu and the issue is only present in 11.10 beta 1. Everything seems to be configured correctly but I encounter the computer in which I share the connection, to be repeatedly connecting and dropping the connection in 5 sec intervals when attempting ICS with Lan from my wireless computer until I receive a bug notice when I attempt to try other settings. Everything else seems to work with Network connections except ICS. Sorry for the lack of info or logs. This was tested in the 64 bit version using Ubuntu 11.10 beta 1 - as said before the computers used were plug and play with 11.04.
  ---
  ApportVersion: 1.22.1-0ubuntu2
  Architecture: amd64
  CRDA: Error: [Errno 2] No such file or directory
  DistroRelease: Ubuntu 11.10
  Gconf:

  IfupdownConfig:
   auto lo
   iface lo inet loopback
  InstallationMedia: Ubuntu 11.10 "Oneiric Ocelot" - Beta amd64 (20110901)
  IpRoute:
   default via 192.168.1.254 dev wlan0  proto static
   169.254.0.0/16 dev wlan0  scope link  metric 1000
   192.168.1.0/24 dev wlan0  proto kernel  scope link  src 192.168.1.64
  Keyfiles: Error: [Errno 2] No such file or directory
  NetworkManager.state:
   [main]
   NetworkingEnabled=true
   WirelessEnabled=true
   WWANEnabled=true
   WimaxEnabled=true
  Package: network-manager 0.9.0-0ubuntu3
  PackageArchitecture: amd64
  ProcEnviron:
   PATH=(custom, no user)
   LANG=en_US.UTF-8
   SHELL=/bin/bash
  ProcVersionSignature: Ubuntu 3.0.0-11.17-generic 3.0.4
  Tags:  oneiric running-unity
  Uname: Linux 3.0.0-11-generic x86_64
  UpgradeStatus: No upgrade log present (probably fresh install)
  UserGroups: adm admin cdrom dialout lpadmin plugdev sambashare
  mtime.conffile..etc.NetworkManager.NetworkManager.conf: 2011-09-12T17:15:11.395570

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