Comment 1 for bug 1236577

For reference, to reproduce this, launch an instance of saucy with this user-data:
#cloud-config
system_info:
   default_user:
     name: smoser

ssh into instance, then add a 'ubuntu' user. That new ubuntu user should get uid '1001' (anything other than 1000 is needed to show the problem).

Then,

$ id -u; whoami
1000
smoser

$ id -u ubuntu
1001

$ sudo lxc-create -t ubuntu-cloud -n precise-source -- --release=precise
$ sudo lxc-create -t ubuntu-cloud -n lucid-source -- --release=lucid

# verify the home dir has correct ownership wrt the /etc/passwd inside the image

$ ls --numeric-uid-gid -d /var/lib/lxc/precise-source/rootfs/home/ubuntu
drwxr-xr-x 2 1000 1000 4096 Oct 3 07:06 /var/lib/lxc/precise-source/rootfs/home/ubuntu
$ grep ubuntu /var/lib/lxc/precise-source/rootfs/etc/passwd
ubuntu:x:1000:1000:Ubuntu:/home/ubuntu:/bin/bash

$ ls --numeric-uid-gid -d /var/lib/lxc/lucid-source/rootfs/home/ubuntu
drwxr-xr-x 2 1000 1000 4096 Oct 7 03:05 /var/lib/lxc/lucid-source/rootfs/home/ubuntu
$ grep "ubuntu" /var/lib/lxc/lucid-source/rootfs/etc/passwd
ubuntu:x:1000:1000:Ubuntu,,,:/home/ubuntu:/bin/bash

$ sudo lxc-clone --snapshot -B overlayfs -o precise-source -n test1 -- --auth-key=/home/smoser/.ssh/id_rsa.pub

$ sudo lxc-start --daemon --name test1

$ sudo lxc-ls --fancy --fancy-format="ipv4" test1
IPV4
----------
10.0.3.252

$ ssh ubuntu@10.0.3.252 "echo It worked"
The authenticity of host '10.0.3.252 (10.0.3.252)' can't be established.
ECDSA key fingerprint is 3d:e8:79:9d:b0:02:5f:3e:db:b3:8e:97:d2:23:4a:af.
Are you sure you want to continue connecting (yes/no)? yes
Warning: Permanently added '10.0.3.252' (ECDSA) to the list of known hosts.
It worked