I just answered a similar query in indiana-discuss.

First, if you are using 'pkg image-update', you are not
running nevada, you are running opensolaris.  There
is a huge difference in the way zones work between
nevada and opensolaris.

To answer your question.

The way zones work in opensolaris has been changed 
significantly for the 11.08 release.  See the spec at:


There are several issues which we need to document for this

In your case your global zone BE needs to have a UUID.  If you
update from an older release to a newer one, the old
image-update code won't be able to assign a BE UUID, but
once you are on a recent release (98 or later) then subsequent
BEs will get a UUID.  In your case, you can just create another
BE now in order to get a usable global BE.

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