The problem is that "light virtualisation" systems like linux-vserver do
not provide a true Linux system to the guest, whereas proper
virtualisation systems take great care to provide a full Linux system.

In this case, the problem is that vserver doesn't provide separate
hardware contexts, udev netlink sockets, uevents, etc. all of which are
needed by Ubuntu's boot sequence.

You need to configure your vserver specially (speak to vserver upstream
about this), including replacing code parts of Ubuntu's boot with
hardcoded scripts that do the right thing for vserver

** Changed in: upstart (Ubuntu)
       Status: New => Won't Fix

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upstart incompatible with linux-vserver
https://bugs.launchpad.net/bugs/482292
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