Public bug reported:

Eucalyptus versions:

ii  eucalyptus-common             1.6.2-0ubuntu30.1
ii  eucalyptus-java-common        1.6.2-0ubuntu30.1
ii  eucalyptus-sc                 1.6.2-0ubuntu30.1

Bug 430846 and bug 498174 partially dealt with this issue. But, on an SC
(perhaps also on the Walrus?) currently you cannot create more than 32
volumes -- trying to create the 33rdvolume will fail with the SC
reporting:

ERROR [BlockStorage:pool-10-thread-5]
com.eucalyptus.util.EucalyptusCloudException: Could not create loopback
device for //var/lib/ eucalyptus/volumes/vol-xxxxxxxxx. Please check the
max loop value and permissions

This, of course, is an artificial restriction: Consider a SC with a few
terabytes of disc space, and consider euca-create-volumes usually
running with a few tens of giga for the allocation (-s)... the system
very fast reaches saturation, and real disc utilisation is still
(probably) in the few units of percent.

So, either this should be set in /etc/eucalyptus/eucaliptus.*conf, or
eucalyptus should dynamically create the needed /dev/loppxxx.

*Notes*: 
(1) setting this on the upstart script would allow for an initial setup, but 
would require the SC to be restarted for the new value to take effect, which 
will probably cause a temporary interruption of volume service.
(2) I wonder how the system would behave on a reboot...

** Affects: eucalyptus (Ubuntu)
     Importance: Undecided
         Status: New

-- 
SC: Maximum number of loop devices should be configurable
https://bugs.launchpad.net/bugs/586134
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