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.

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https://bugs.launchpad.net/bugs/924281

Title:
  cgroup-lite not installable inside 'lxc create -t ubuntu' container

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