In SYSTEM mode, Eucalypus connects instances to the existing LAN by way
of a bridge, and relies on existing networking infrastructure (DHCP
servers, DNS, etc.) to run them. This is a very basic mode of operation,
and is somewhat limited. In MANAGED(-NOVLAN) you get all the bells and
whistles Eucalyptus has to offer: EBS, Elastic IP's, the user-data and
meta-data service, etc. So much for the rationale.

In order to get into MANAGED(-NOVLAN) mode, Eucalyptus needs to have a
dedicated subnet for its instances. I've added debconf questions to get
networking information from the admin and changed a bit of logic along
the way to make Eucalyptus use these settings. In this mode, Eucalyptus
will run a  few extra services, which will only be exposed to
Eucalyptus' internal subnet.

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[FFe] CC and NC networking mode is set to 'SYSTEM' by default
https://bugs.launchpad.net/bugs/425914
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