Tried both 9.10 version as well as 10.04 versions,but still no luck in creating an instance on the created private cloud.
Examining the /var/log/eucalyptus/cc.log found the following line
[Wed May 19 14:23:04 2010][001218][EUCAWARN ] vnetInitTunnels(): in MANAGED-NOVLAN mode, priv interfaceChanged the eth0 to a bridge
'eth0' must be a bridge, tunneling disabled
auto eth0
iface eth0 inet manual
auto br0
iface br0 inet static
address 192.168.0.74
netmask 255.255.255.0
network 192.168.0.0
broadcast 192.168.0.255
gateway 192.168.0.100
# dns-* options are implemented by the resolvconf package, if installed
dns-nameservers 100.00.00.00
dns-search domain.net
bridge_ports eth0
bridge_fd 9
bridge_hello 2
bridge_maxage 12
bridge_stp off
Edited the /etc/eucalyptus/eucalyptus.conf to include the br0 (changed the default etho)
# Affects: CC, NC
# See: **NOTE** below
ENABLE_WS_SECURITY="Y"
LOGLEVEL="DEBUG"
VNET_PUBINTERFACE="br0"
VNET_PRIVINTERFACE="br0"
VNET_MODE="MANAGED-NOVLAN"
Edited the /etc/eucalyptus/eucalyptus.local.conf to change the default subnet to a network specific one
# network configuration from the input configuration filerestarted with
VNET_MODE="MANAGED-NOVLAN"
#VNET_SUBNET="172.19.0.0"
VNET_SUBNET="192.168.0.0"
VNET_NETMASK="255.255.0.0"
VNET_DNS="100.00.00.00"
VNET_ADDRSPERNET="32"
VNET_PUBLICIPS="192.168.0.76-192.168.0.86"
sudo restart eucalyptus-cc CLEAN=1and problem went away and was able to create an instance on the private cloud.