"* Creating a nova instance with local disk, the thing of course does not boot. Using rescue mode to create a booting instance with the disk as /dev/sdb, and inspecting sdb, I again see the contents of the raw image files and not /etc/gshadow. This is NOT what I expected based on this bug report."
can you clarify what you mean by
"* Creating a nova instance with local disk, the thing of course does not boot. Using rescue mode to create a booting instance with the disk as /dev/sdb, and inspecting sdb, I again see the contents of the raw image files and not /etc/gshadow. This is NOT what I expected based on this bug report."