Public bug reported:

I'm getting the following with the most recent update. Logs will follow:

$sudo lxc-start -n u1-server
lxc-start: Permission denied - failed to umount 'dev/pts'
lxc-start: failed to setup the new pts instance
lxc-start: failed to setup the container
lxc-start: invalid sequence number 1. expected 2
lxc-start: failed to spawn 'u1-server'
$ sudo apt-cache policy lxc
lxc:
  Installed: 0.7.5-3ubuntu42


LXC container was working prior to kernel upgrade. Previously thought
that this was LP # 960144, which is at least similar but reported
fix/released. Found with later revision of package as noted.

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: lxc 0.7.5-3ubuntu42
ProcVersionSignature: Ubuntu 3.2.0-19.31-generic 3.2.12
Uname: Linux 3.2.0-19-generic x86_64
NonfreeKernelModules: nvidia
ApportVersion: 1.94.1-0ubuntu2
Architecture: amd64
Date: Wed Mar 21 15:25:14 2012
ProcEnviron:
 TERM=xterm
 LANG=en_US.UTF-8
 SHELL=/bin/bash
SourcePackage: lxc
UpgradeStatus: Upgraded to precise on 2012-02-01 (49 days ago)

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


** Tags: amd64 apport-bug precise

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https://bugs.launchpad.net/bugs/961536

Title:
  lxc failing to initialize after update of Precise

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