Regarding needing disk space, note that /dev/vdb1 should have a large amount of disk. You can unmount /mnt, pvcreate /dev/xvdb; vgcreate lxc /dev/xvdb; then use -B lvm as an additional lxc-create flag to create an lvm-backed container. SNapshotted lvm containers can be created wit lxc-clone -s -o p1 -n p2.
@Gary,
I wasn't able to reproduce this on a m1.xlarge.
Regarding needing disk space, note that /dev/vdb1 should have a large amount of disk. You can unmount /mnt, pvcreate /dev/xvdb; vgcreate lxc /dev/xvdb; then use -B lvm as an additional lxc-create flag to create an lvm-backed container. SNapshotted lvm containers can be created wit lxc-clone -s -o p1 -n p2.