The sed command is broken (I guess people overlooked it somehow on the forum you refer to). It should be:
sed '/-z/s:dnsmasq:dnsmasq -r /etc/dnsmasq/resolv.conf :g' dnsmasq>dnsmasq.local
The fact that you used that broken sed command resulted in erasing /etc/rc.d/dnsmasq.local (or creating it as an empty file). I don't know the details of how NetworkManager is configured on Ubuntu, but I'm guessing that the fact of /etc/rc.d/dnsmasq.local being empty can have an important impact on your whole network configuration.
You can either:
Verify that
/etc/rc.d/dnsmasq.localreally is empty and if so, remove it - your network configuration should get back to the state at which it was before issuing that unfortunatesedcommand.cdinto ``/etc/rc.d/and run the correctedsedcommand above. This should create thednsmasq.local` file containing what the author of that forum post really intended. Possibly the rest might work after that.