Thanks a lot for this precious testing on your impressive configuration.

I see the following in cc.log:

running cmd '///usr/lib/eucalyptus/euca_rootwrap ip addr add 172.19.16.1/23 
broadcast 172.19.17.255 dev eth0:priv label eth0:priv'
could not bring up new device eth0 with ip 172.19.16.1
failed to add gateway IP to device eth0

I suspect ADDRPERNET=512 is having a side-effect here.
Could you try ADDRPERNET=100 and see if you can reliably start up ~98 instances 
?
Or try ADDRPERNET=32 and start 100 instances in 4 separate groups of 25 ?

Thanks in advance !

** Changed in: eucalyptus (Ubuntu)
   Importance: Undecided => High

** Changed in: eucalyptus (Ubuntu)
       Status: New => Incomplete

-- 
maximum 61 "running" instances, others shutting down
https://bugs.launchpad.net/bugs/462140
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