I don't see this.  I wonder why you were getting '.lxc' as your domain
name.  I can't reproduce that right now.

Regardless, note that on a modern saucy system this should be solved
automatically when you set LXC_DOMAIN=lxc in /etc/default/lxc-net.


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

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https://bugs.launchpad.net/bugs/1079794

Title:
  sudo: unable to resolve host.. when creating ubuntu-cloud container

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