Ubuntu Server 12.04 can access LAN but not internet

Your resolv.conf entries are probably bad. You should determine the proper address(es) and write them manually in resolv.conf (removing current entries).
I guess that DNS server is the same as gateway (192.168.0.1).

You can try this before making changes in resolv.conf by command:

dig @192.168.0.1 google.com

Above command tries to ask 192.168.0.1 (not Your current set in resolv.conf) for google.com IP, if there is working DNS server the answer will contain following text:

;; ANSWER SECTION:
google.com.             300     IN      A       173.194.35.162
google.com.             300     IN      A       173.194.35.161
google.com.             300     IN      A       173.194.35.164
[...]

If it fails try entering different IPs in dig command

Another problem is that trying to ping google by IP fails (as you wrote). To make a quick test why it fails try following command:

traceroute 173.194.35.162

You'll see which one of the hops causes the problem. It's possible that Your gateway is not working.


Things to check:

You've got nameservers defined in /etc/resolv.conf

/etc/resolv.conf:

nameserver 8.8.8.8
nameserver 8.8.4.4

You've got a default gateway in your routing table:

ip route

tom.oconnor@charcoal-black:~$ ip route
192.168.122.0/24 dev virbr0  proto kernel  scope link  src 192.168.122.1 
169.254.0.0/16 dev eth0  scope link  metric 1000 
192.168.0.0/16 dev eth0  proto kernel  scope link  src 192.168.100.27 
default via 192.168.1.1 dev eth0  metric 100 

Default route is the one that starts "default via"