Comment 3 for bug 1198963

Thanks for submitting this bug. (Please do try to open separate bugs for each issue) The second part of it (sshd) has been fixed upstream just today (with a patch sent a few days ago). Please open a new bug for that one, and I'll SRU it to raring as I assume that's where you want the fix.

The first issue is not a bug. You specifed 'lxc-start [...] -- -b'. The '--' means execute what is specified after '--' as /sbin/init. Since you said 'lxc-start [...] -- -b', lxc tried to execute '-b'. -b is not a valid executable. I suspect this was a cut and paste error? The -b made sense in the lxc-create command, to request bind-mounting of that home directory. (in lxc-create, arguments following '--' are passed on to the creation template) But you do not need to re-specify it in lxc-start.