This bug was fixed in the package lxc - 0.7.5-3ubuntu59

---------------
lxc (0.7.5-3ubuntu59) precise-proposed; urgency=low

  [ Serge Hallyn ]
  * 0085-pivot-dir: use a directory other than /mnt to put the pivot_root
    old dir into (LP: #986385)
  * 0086-lxc-unshare-zero-args: fix lxc-unshare segfaulting when no command
    is given (LP: #1011603)
  * 0087-lxc-ls-dash: fix lxc-ls for containers whose names start with a
    dash  (LP: #1006332)
  * 0088-ubuntu-template-flock: don't fail when flock is busy, just wait,
    so concurrent lxc-creates don't break.  (LP: #1007483)
  * debian/rules, debian/lxc.apport: install apport hook (LP: #1011644)

  [ Stéphane Graber ]
  * Ship /etc/dnsmasq.d/lxc to configure an eventual system wide
    dnsmasq daemon not to listen on the LXC bridge interface. (LP: #928524)
 -- Serge Hallyn <[email protected]>   Mon, 11 Jun 2012 19:56:30 -0500

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

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https://bugs.launchpad.net/bugs/928524

Title:
  lxcbr0 fails to come up when dnsmasq is installed

Status in “dnsmasq” package in Ubuntu:
  Invalid
Status in “libvirt” package in Ubuntu:
  Fix Released
Status in “lxc” package in Ubuntu:
  Fix Released
Status in “network-manager” package in Ubuntu:
  New
Status in “dnsmasq” source package in Precise:
  Invalid
Status in “libvirt” source package in Precise:
  New
Status in “lxc” source package in Precise:
  Fix Released
Status in “network-manager” source package in Precise:
  New

Bug description:
  ============ SRU justification ===========
  Impact: lxc (by way of lxc-net) fails to start when dnsmasq is installed
  Development fix: install a dnsmasq.d file to prevent the system-wide dnsmasq
  from binding to lxcbr0
  Stable fix: same as Development fix
  Test case:
   sudo apt-get purge lxc
   sudo apt-get -y install dnsmasq
   sudo apt-get -y install lxc
  Regression potential: There should be none, since we are simply telling the
  system-wide dnsmasq (if any) not to bind to the lxcbr0 which our own dnsmasq
  instance will bind to.
  ==========================================

  If dnsmasq is installed and running as default, it will bind all
  interfaces.  As a result lxc can't run dnsmasq against lxcbr0 (and
  same with libvirt and virbr0).

  At the least this should be documented in lxc.  Preferably we'd find a
  way to have dnsmasq be less of a bully.

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