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Beef and Beer Oven Stew

2 tablespoons butter or margarine 
1 cup sliced onion 
2 pounds lean beef, cut in cubes -- 1-inch 
1 tablespoon flour 
1 cup beer 
2 teaspoons vinegar 
1 teaspoon salt 
1/2 teaspoon pepper 
1/2 teaspoon sugar 
1 bay leaf 
1/4 teaspoon thyme -- crumbled 

Preheat oven to 350 degrees. In a Dutch oven over medium-high heat, melt butter; brown onions. Remove onions from the pan; add beef and brown. Sprinkle beef with flour; add onions and remaining ingredients and stir well. Cover tigtly and bake for about 2 1/2 hours, or until very tender. 
Serves 6.