This bug was fixed in the package lxc - 0.7.5-3ubuntu47

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lxc (0.7.5-3ubuntu47) precise; urgency=low

  * 0065-fix-bindhome-relpath: use relative path as target for bind mount
    in lxc-ubuntu template (LP: #968371)
 -- Serge Hallyn <[email protected]>   Thu, 29 Mar 2012 22:04:30 +0000

** Changed in: lxc (Ubuntu)
       Status: Confirmed => Fix Released

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https://bugs.launchpad.net/bugs/968371

Title:
  lxc-create -b is broken

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