If someone encounters these symptoms in Precise, the more detailed instructions to fix it is to adjust apparmor as described in http://www.stgraber.org/2012/05/04/lxc-in-ubuntu-12-04-lts/ , in the section labeled "Container nesting." The apparmor change is part of Quantal, so the blog post's steps should no longer be necessary after Precise.
If someone encounters these symptoms in Precise, the more detailed instructions to fix it is to adjust apparmor as described in http:// www.stgraber. org/2012/ 05/04/lxc- in-ubuntu- 12-04-lts/ , in the section labeled "Container nesting." The apparmor change is part of Quantal, so the blog post's steps should no longer be necessary after Precise.