If anyone else is continuing to have this problem - this is working - but SLOW. 
 Your 4th of July holiday will probably be over before it finishes.

# export PKG_CLIENT_TIMEOUT=300
# export PKG_TIMEOUT_MAX=10
# zoneadm -z web install -e amp-dev 
A ZFS file system has been created for this zone.
   Publisher: Using opensolaris.org (http://pkg.opensolaris.org/release/).
       Image: Preparing at /zones/web/root.
Sanity Check: Looking for 'entire' incorporation.
  Installing: Core System (output follows)
DOWNLOAD                                    PKGS       FILES     XFER (MB)
SUNWcs                                      0/20   1566/3021    9.33/42.55 

Since this has been happening intermittently since 2008, maybe SUN can address 
the problem and resolve it?
-- 
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