This bug was fixed in the package lxc - 0.7.5-3ubuntu38

---------------
lxc (0.7.5-3ubuntu38) precise; urgency=low

  * 0058-fixup-ubuntu-cloud:
    - fix typo in check for $debug (LP: #955935)
    - Download specified release, not always precise
    - If cloudimg rootfs.tar.gz does not exist, create one from the base
      cloudimg tar.gz.  (LP: #955938)
    - Explicitly set ubuntu user's password.
    - Switch from daily to released stream (per smoser's suggestion).
 -- Serge Hallyn <serge.hal...@ubuntu.com>   Thu, 15 Mar 2012 17:57:10 -0500

** Changed in: lxc (Ubuntu)
       Status: Confirmed => Fix Released

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https://bugs.launchpad.net/bugs/955938

Title:
  Unable to create lxc instances with ubuntu-cloud template for release
  other than precise

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