This is a timeout occurring on large images (10G) that were just registered.
The workaround is to use smaller images, or wait more between registration and 
first usage.
Working with upstream  on how to best solve that case.

** Changed in: eucalyptus (Ubuntu)
   Importance: High => Medium

** Changed in: eucalyptus (Ubuntu)
       Status: Confirmed => Triaged

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Instances from fresh EMIs sometimes fail to start
https://bugs.launchpad.net/bugs/439410
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