Comment 5 for bug 551847

Ok, I found the source of this problem. Its really a dupe of bug 341006 , or at very least, a fix to that bug that addressed the MAC addresses used by UEC would make this problem go away.

The reason there is no output after the kernel in the console above is that upstart is quietly waiting for eth0 to come up, but it never will because /etc/udev/rules.d/70-persistent-net.rules has given 'eth0' to a device attached in the bundled instance.

So, that leaves us with the following solutions / work arounds:

a.) cloud-init (or some other package) could possibly add some rules or black lists so the persistent-net rules were not written in images where it was installed. (I'd have to see if this would be possible)
b.) euca-bundle-vol could take it upon itself to remove that file
c.) the user can 'sudo rm -f /etc/udev/rules.d/70-persistent-net.rules' before invoking euca-bundle-vol
d.) the user can use a more clean approach to re-bundling an image.

 I generally don't like the idea behind euca-bundle-vol, and think that a tool like this is going to result in a never ending series of hacks to take a booted instance and turn it into a clean image. I would much prefer that re-bundling was done by downloading the image (http://uec-images.ubuntu.com/releases), extracting it, mounting loopback, modifying, and unmounting.

That said, I'll take a look and see 'a' could be accomplished.