Egohan:
Are you basing your belief that the VM got an IP address based on the 169.254.169.254 you are seeing in the logs you posted?
If so, you may be mistaken -- if configured for fixed range addresses, my understanding is you should be seeing some evidence that dhcp is returning an IP address to the VM in the range in the console logs, e.g., 10.4.128.0 is the range I have assigned.
ci-info: lo : 1 127.0.0.1 255.0.0.0
ci-info: eth0 : 1 10.0.1.3 255.255.255.0 fa:16:3e:d3:f2:f1
ci-info: route-0: 0.0.0.0 10.0.1.1 0.0.0.0 eth0 UG
ci-info: route-1: 10.0.1.0 0.0.0.0 255.255.255.0 eth0 U
cloud-init start running: Fri, 24 Aug 2012 00:22:41 +0000. up 6.52 seconds
2012-08-24 00:22:44,681 - DataSourceEc2.py[WARNING]: 'http://169.254.169.254' failed: url error [timed out]
Turns out I am having almost the same issues as you were describing. I followed your steps exactly to create a private net and spin up a VM. In the console logs of the VM, I see:
Starting network...
udhcpc (v1.18.5) started
Sending discover...
Sending discover...
Sending discover...
No lease, failing
WARN: /etc/rc3.d/S40-network failed
cloud-setup: checking http://169.254.169.254/2009-04-04/meta-data/instance-id
wget: can't connect to remote host (169.254.169.254): Network is unreachable
cloud-setup: failed 1/30: up 16.39. request failed
wget: can't connect to remote host (169.254.169.254): Network is unreachable
cloud-setup: failed 2/30: up 17.46. request failed
wget: can't connect to remote host (169.254.169.254): Network is unreachable
cloud-setup: failed 3/30: up 18.51. request failed
wget: can't connect to remote host (169.254.169.254): Network is unreachable
cloud-setup: failed 4/30: up 19.57. request failed
This is distinctly different than what I was getting with devstack/OVS quantum V1 pre-F3 (I would get a DHCP-returned address in the fixed range I specified in my devstack localrc), and I'm tearing my hair out trying to figure out why.
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