Ok, so since this is a cloud-init issue, and we've proven that recent cloud-init as now in F18 fixes the issue, I'm going to close this bug invalid, since it turns out this is not really a heat bug.
Ok, so since this is a cloud-init issue, and we've proven that recent cloud-init as now in F18 fixes the issue, I'm going to close this bug invalid, since it turns out this is not really a heat bug.