Thanks again for comments, I want to clear this up with a few notes:

 o In OSOL 2009-06, zones MUST be installed in a zfs filesystem. 
 o This is different than any dataset specified, which is like adding an fs.
And of course if you specify as a dataset the same zfs pool that you installed 
into, the system will boot into single user mode waiting for the local 
filesystem service to clear with an error something like "No files expected in 

Anyway, despite my operator error, I am happy to be running under 2009-06 where 
I can put the zone in its own zfs fs.  As mentioned elsewhere, the zone path is 
not hidden so users can have some idea what other zones are running on your 

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