The cause of this is the handling proc mounts. I pushed a change to
vmbuilder-0.11 used by the cloud image build process.

** Changed in: uec-live-build
       Status: Confirmed => Fix Released

** Changed in: ubuntu
       Status: Confirmed => Fix Released

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https://bugs.launchpad.net/bugs/843261

Title:
  cloud-image build process fails when building Natty and earlier on
  Oneiric

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