Comment 12 for bug 790863

Whilst I find the substitution of a possible regression for a definite regression a bit of a bizarre choice on Canonical's part (especially as it's entirely possible to disable the possible regression with a compile flag to the package in question), a workaround that should work is to install the new Oneiric kernel now bug #843892 is fixed. Of course that doesn't give you LTS support for your kernel, and I don't know of a way that you can even get security updates automatically. However, it will let you start lxc.

I realise that this workaround is effectively "so don't use Ubuntu 10.04 LTS kernel then", but it might help.