It is as per design. You can use any of the networks mentioned in 
http://tools.ietf.org/html/rfc1918 

3. Private Address Space

   The Internet Assigned Numbers Authority (IANA) has reserved the
   following three blocks of the IP address space for private internets:

     10.0.0.0        -   10.255.255.255  (10/8 prefix)
     172.16.0.0      -   172.31.255.255  (172.16/12 prefix)
     192.168.0.0     -   192.168.255.255 (192.168/16 prefix)

Thank you,
Chandan.

-----Original Message-----
From: motty cruz [mailto:motty.c...@gmail.com] 
Sent: Monday, January 20, 2014 9:55 AM
To: users@cloudstack.apache.org
Subject: Virtual Guest Cidr is not RFC1918 compliant advance networking CS4.2

Hello, when creating a new network using cloudmonkey i get the following error 
Virtual Guest CIDR is not RFC1918 Compliant any idea how to bypass this problem?

Thanks,

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