There is a bug in the latest available Openstack Nova package. When you query the cloud for security groups listing in a quick succession, Openstack throws back an empty set error immediately after an instance is created, but the same call succeeds a few seconds later.
When an attempt to launch an instance, an error like this is thrown:
Cloud Exception: 400: badRequest: The server could not comply with the request since it is either malformed or otherwise incorrect.
The bug has been reported to Openstack which is tracked here: https://bugs.launchpad.net/nova/+bug/1333471.
As a workaround, we have a patch available that will help resolve the issue: http://privatecloudtools.s3.amazonaws.com/security_groups.patch. Customers are advised to apply the patch until an updated Nova package with the fix is released.
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