Apache cloudstack: Cannot add instances using template created from snapshot - apache-cloudstack

Question

I followed this https://github.com/imduffy15/GSoC-2014/ and installed apache cloudstack with basic networking in my local machine, and every thing worked smoothly.
​I can add instances from the built in tiny linux template(cent-os 5.6 64bit) without having any issue.
I got a snapshot of the running instance volume and created a template from it. When I try to add an instance using that template I always get InsufficientServerCapacityException.
According to my dashboard there are enough capacity to add the instance.
Any ideas?
console:
​WARN [o.a.c.alerts] (API-Job-Executor-5:ctx-4692c763 job-166 ctx-b141500e) alertType:: 8 // dataCenterId:: 1 // podId:: null // clusterId:: null // message:: Failed to deploy Vm with Id: 29, on Host with Id: null
INFO [o.a.c.a.c.a.v.DeployVMCmdByAdmin] (API-Job-Executor-5:ctx-4692c763 job-166 ctx-b141500e) com.cloud.exception.InsufficientServerCapacityException: Unable to create a deployment for VM[User|i-2-29-VM]Scope=interface com.cloud.dc.DataCenter; id=1
INFO [o.a.c.a.c.a.v.DeployVMCmdByAdmin] (API-Job-Executor-5:ctx-4692c763 job-166 ctx-b141500e) Unable to create a deployment for VM[User|i-2-29-VM]
com.cloud.exception.InsufficientServerCapacityException: Unable to create a deployment for VM[User|i-2-29-VM]Scope=interface com.cloud.dc.DataCenter; id=1
at org.apache.cloudstack.engine.cloud.entity.api.VMEntityManagerImpl.reserveVirtualMachine(VMEntityManagerImpl.java:214)
at org.apache.cloudstack.engine.cloud.entity.api.VirtualMachineEntityImpl.reserve(VirtualMachineEntityImpl.java:200)
at com.cloud.vm.UserVmManagerImpl.startVirtualMachine(UserVmManagerImpl.java:3515)
at com.cloud.vm.UserVmManagerImpl.startVirtualMachine(UserVmManagerImpl.java:3166)
at com.cloud.vm.UserVmManagerImpl.startVirtualMachine(UserVmManagerImpl.java:3154)
at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:57)
at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:43)
at java.lang.reflect.Method.invoke(Method.java:606)
at org.springframework.aop.support.AopUtils.invokeJoinpointUsingReflection(AopUtils.java:317)
at org.springframework.aop.framework.ReflectiveMethodInvocation.invokeJoinpoint(ReflectiveMethodInvocation.java:183)
at org.springframework.aop.framework.ReflectiveMethodInvocation.proceed(ReflectiveMethodInvocation.java:150)
at org.apache.cloudstack.network.contrail.management.EventUtils$EventInterceptor.invoke(EventUtils.java:106)
at org.springframework.aop.framework.ReflectiveMethodInvocation.proceed(ReflectiveMethodInvocation.java:161)
at com.cloud.event.ActionEventInterceptor.invoke(ActionEventInterceptor.java:51)
at org.springframework.aop.framework.ReflectiveMethodInvocation.proceed(ReflectiveMethodInvocation.java:161)
at org.springframework.aop.interceptor.ExposeInvocationInterceptor.invoke(ExposeInvocationInterceptor.java:91)
at org.springframework.aop.framework.ReflectiveMethodInvocation.proceed(ReflectiveMethodInvocation.java:172)
at org.springframework.aop.framework.JdkDynamicAopProxy.invoke(JdkDynamicAopProxy.java:204)
at com.sun.proxy.$Proxy224.startVirtualMachine(Unknown Source)
at org.apache.cloudstack.api.command.admin.vm.DeployVMCmdByAdmin.execute(DeployVMCmdByAdmin.java:48)
at com.cloud.api.ApiDispatcher.dispatch(ApiDispatcher.java:141)
at com.cloud.api.ApiAsyncJobDispatcher.runJob(ApiAsyncJobDispatcher.java:108)
at org.apache.cloudstack.framework.jobs.impl.AsyncJobManagerImpl$5.runInContext(AsyncJobManagerImpl.java:503)
at org.apache.cloudstack.managed.context.ManagedContextRunnable$1.run(ManagedContextRunnable.java:49)
at org.apache.cloudstack.managed.context.impl.DefaultManagedContext$1.call(DefaultManagedContext.java:56)
at org.apache.cloudstack.managed.context.impl.DefaultManagedContext.callWithContext(DefaultManagedContext.java:103)
at org.apache.cloudstack.managed.context.impl.DefaultManagedContext.runWithContext(DefaultManagedContext.java:53)
at org.apache.cloudstack.managed.context.ManagedContextRunnable.run(ManagedContextRunnable.java:46)
at org.apache.cloudstack.framework.jobs.impl.AsyncJobManagerImpl$5.run(AsyncJobManagerImpl.java:460)
at java.util.concurrent.Executors$RunnableAdapter.call(Executors.java:471)
at java.util.concurrent.FutureTask.run(FutureTask.java:262)
at java.util.concurrent.ThreadPoolExecutor.runWorker(ThreadPoolExecutor.java:1145)
at java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:615)
at java.lang.Thread.run(Thread.java:745)

Answer 1

I replied to your private email. Will reply here for anybody googling the issue.
This is most likely due to the service offering you are using.
The default Cloudstack service offerings use shared storage. The setup for my GSoC project is all local storage.
You can create a new service offering via the UI and just specified local storage.
Alternatively, open up the SQL database, navigate over to the service_offering_view and modify the use_local_storage column to be 1.
EDIT:
Can you look at the template_view for the template you created based off a volume. Check that the column flag for HVM is set to 0.