Comment 3 for bug 394398

This is also happening in oneiric ocelot package 2.0.871-0ubuntu9.

Running the following:
iscsiadm -m discovery -t st -p 169.169.169.12
iscsiadm -m node -T "iqn.2008-08.com.starwindsoftware:-testing" -v automatic --portal "169.169.169.12"

automatically creates a folder structure like:
/etc/iscsi/nodes/iqn.2008-08.com.starwindsoftware\:-testing/169.169.169.12\,3260

thus it never automatically starts because the following init.d script chunk never runs properly.
ISCSI_TARGET_NB=$(cat /etc/iscsi/nodes/*/*/default 2>/dev/null| grep -c automatic)
ISCSI_SESSION_NB=$($ADM -m session 2>/dev/null | grep -c ^)
if [ "${ISCSI_TARGET_NB}" -ne "${ISCSI_SESSION_NB}" ]; then
        $ADM -m node --loginall=automatic > /dev/null
        udevadm settle
fi

Two possible workarounds:
Change ISCSI_TARGET_NB=$(cat /etc/iscsi/nodes/*/*/default 2>/dev/null| grep -c automatic) to ISCSI_TARGET_NB=$(cat /etc/iscsi/nodes/*/* 2>/dev/null| grep -c automatic)

or

mkdir /etc/iscsi/nodes/iqn.2008-08.com.starwindsoftware\:-testing/automatic
echo "automatic" >> /etc/iscsi/nodes/iqn.2008-08.com.starwindsoftware\:-testing/automatic/default