Hey again, 
  1) there was definitely a perms problem, which I have fixed here.
  2) the path for where local volumes are stored is (I believe) controlled by 
tgt. Have a look inside /etc/tgt/ folder but it should have a cinder.conf with 
the path in there. This assumes that you have installed tgt, and I am not sure 
if it's cinders place to 'stomp' on any configuration you may have in there. 
Regardless, I also put in a fix for the folder for cinder volumes to be created 
in /var/lib/cinder/volumes

  Regards
  S.

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Title:
  Packaging Issues into Ubuntu 12.04

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