After much discussion with koolhead17 on #ubuntu-server I think that we
have identified the caused of this issue.

The original network configuration was:

  eth0 - nova public interface
  br100 -> eth1 - nova private interface

nova-network is running in VLAN mode.

When nova-network starts its configures VLAN 100 on br100 (probably
creating a vlan100@br100 interface) and then does some configuration on
the bridge (which it would normally automatically create).  It appears
that this works fine on natty - however on oneiric it results in Dead
loops (something like below):

   br100 -> vlan100@br100 -> br100 -> eth1

Removing the br100 interface, manually configuring the eth1 interface
and setting --vlan_interface=eth1 and not specifying
--bridge_interface=br100 when creating nova private networks stopped
this issue from happening:

   br100 -> vlan100@eth1 -> eth1

I believe this is the right configuration for nova.



** Changed in: linux (Ubuntu)
   Importance: Undecided => Low

** Changed in: linux (Ubuntu)
       Status: Confirmed => Opinion

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https://bugs.launchpad.net/bugs/856417

Title:
  Dead loop on virtual device br100, fix urgently.

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