Comment 2 for bug 398568

This problem occurs when using a pv-ops kernel, which is the default kernel used by ami-bbf514d2. When ami-bbf514d2 is booted using a kernel built with the xen patchset, it works in all availability zones.

This has now been tested with the intrepid + xen kernel (used with ami-064aad6f). A vanilla 2.6.28 + xen patchset, and the new Jaunty kernel + xen patchset.