I think that you can basically ignore my comment #5.
When I was seeing this issue, when booting with kvm, I was not booting with 
'boot=on'.
After booting with boot=on, the problem goes away. boot=on is generated in the 
kvm command line by eucalyptus, so I don't think this will be an issue there.

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eucalyptus instance reboot fails: Guest moved used index from 0 to 2639
https://bugs.launchpad.net/bugs/615529
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