I was able to recreate the original problem of bug 800824 by doing the 
following on a precise instance:
 - setup the instance, get source roots of the ubuntu-cloud lxc root:
   for r in oneiric precise quantal; do \
     sudo lxc-create -t ubuntu-cloud -n source-$r-amd64 -- \
        --release $r --arch amd64 --stream daily;  done
 - RELEASE="oneiric"
 - sudo apt-get install lxc
 - sudo lxc-clone -o source-$RELEASE-amd64 $RELEASE-amd64
 - edit /var/lib/lxc/$RELEASE-amd64/rootfs/etc/init/cloud-init-nonet.conf
   commenting out the 'start networking' line.
 - sudo lxc-start --name=$RELEASE-amd64
 - Here, you will see the cloud-init nonet timeout, and
   wait for 120 seconds before seeing a tty prompt.
 - sudo lxc-stop -n $RELEASE-amd64
 - sudo lxc-destroy --name=$RELEASE-amd64

If you do *not* comment the line out in cloud-init-nonet.conf, you will
see the cloud-init output and boot quickly.

Repeating the above process for RELEASE=precise will show both cases working
 RELEASE=oneiric with 'start networking' : boots quickly
 RELEASE=oneiric without 'start-networking': timeout
 RELEASE=precise with 'start networking' : boots quickly
 RELEASE=precise without 'start-networking': timeout
 RELEASE=quantal with 'start networking' : boots quickly
 RELEASE=quantal without 'start-networking': timeout

On quantal, the cloud-init output in the timeout case looks like:
  Cloud-init v. 0.7 running 'init-local' at Wed, 22 Aug 2012 20:09:07 +0000. Up 
5131.22 seconds.
  cloud-init-nonet waiting 120 seconds for a network device.

What is the correct fix here?

** Changed in: cloud-init (Ubuntu)
       Status: Triaged => Confirmed

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https://bugs.launchpad.net/bugs/1031065

Title:
  cloud-init-nonet runs 'start networking' explicitly

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