Thanks for the information.  The key was in the /proc/self/mounts
output:  you have cgroups mounted in schroots.  This is triggering a bug
in the way cgroups are handled in lxc.

You should be able to work around it by unmounting the cgroup
filesystems from under /var/lib/schroot/mount/rtmpdump-
test/sys/fs/cgroup.

I'll work on a fix for lxc.

** Changed in: lxc (Ubuntu)
     Assignee: (unassigned) => Serge Hallyn (serge-hallyn)

** Changed in: lxc (Ubuntu)
   Importance: High => Critical

** Changed in: lxc (Ubuntu)
       Status: Confirmed => In Progress

** Also affects: lxc (Ubuntu Raring)
   Importance: Undecided
       Status: New

** Also affects: lxc (Ubuntu Saucy)
   Importance: Critical
     Assignee: Serge Hallyn (serge-hallyn)
       Status: In Progress

** Changed in: lxc (Ubuntu Raring)
   Importance: Undecided => Critical

** Changed in: lxc (Ubuntu Raring)
       Status: New => In Progress

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https://bugs.launchpad.net/bugs/1176287

Title:
  lxc-start: Error creating cgroups

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