Paul, upstream says they haven't hit such a limit in their testing, they
think it must come from some configuration issue or status that would be
carried from tests to tests.

Dan: could you please confirm that you don't run into any limit running the 
same test that Paul ran in comment 10, namely:
VNET_ADDRSPERNET="32"
Create 30 security groups
For each group, run: euca-run-instance -n 20 --addressing private --group X
Paul can only get 75 machines running, with other being terminated *by security 
group*.
Do you confirm that VNET_PUBLICIPS value shouldn't factor in that test, since 
we are using private addressing.

Paul: could you confirm you start the test from a pristine state. That
includes rebooting (or restarting eucalyptus) if you are using the
current karmic packages, or running "sudo restart eucalyptus CLEAN=1" if
you are running the current karmic-proposed packages.

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