Does pvscan show any disks assigned to the "cinder-volumes" volume group on any 
of your cinder nodes?  That's the default volume group used for new volume 
creation.

From: Openstack 
[mailto:openstack-bounces+eric_e_smith=dell....@lists.launchpad.net] On Behalf 
Of Ashutosh Narayan
Sent: Thursday, May 09, 2013 4:58 AM
To: OpenStack
Subject: [Openstack] [Grizzly] Unable to create volumes

Hi folks,

Am all set to launch an instance after getting good
response from this mailing list for most of my queries.
I am now facing issues in creating volumes from the
dashboard. Here is volume log file for reference :

2013-05-09 15:24:49    ERROR [cinder.service] Unhandled exception
Traceback (most recent call last):
  File "/usr/lib/python2.6/site-packages/cinder/service.py", line 224, in 
_start_child
    self._child_process(wrap.server)
  File "/usr/lib/python2.6/site-packages/cinder/service.py", line 201, in 
_child_process
    launcher.run_server(server)
  File "/usr/lib/python2.6/site-packages/cinder/service.py", line 95, in 
run_server
    server.start()
  File "/usr/lib/python2.6/site-packages/cinder/service.py", line 342, in start
    self.manager.init_host()
  File "/usr/lib/python2.6/site-packages/cinder/volume/manager.py", line 143, 
in init_host
    self.driver.check_for_setup_error()
  File "/usr/lib/python2.6/site-packages/cinder/volume/drivers/lvm.py", line 
78, in check_for_setup_error
    raise exception.VolumeBackendAPIException(data=exception_message)
VolumeBackendAPIException: Bad or unexpected response from the storage volume 
backend API: volume group cinder-volumes doesn't exist

It says - volume group cinder-volume does not exist.
But /etc/cinder/cinder.conf has volume group set to cinder-volumes.
Here is a snippet of cinder.conf :
[..]
verbose=False
rabbit_port=5672
rabbit_password=
volume_group=cinder-volumes
rabbit_host=127.0.0.1
iscsi_ip_address=192.168.105.67
[..]

Any pointers on how to trouble shoot this issue.
I have also followed this bug - 
https://bugs.launchpad.net/openstack-manuals/+bug/1078353

Thank you,

--
Ashutosh Narayan

http://ashutoshn.wordpress.com/
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