Another data point:
Freshly-installed CLC+Walrus+CC+SC / NC, eucalyptus 1.6.2-0ubuntu12

Starting one instance: 20100310 boots perfectly on my cloud-in-a-bag.
Starting two instances at the same time: one of them fails, same symptoms.
Starting two instances at the same time: the two fail.
Letting the cloud cool off, starting one instance: boots ok.

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cloud-init job not running in eucalyptus without ramdisk
https://bugs.launchpad.net/bugs/531494
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