Thanks Daniel for suggestion, i have made changes in my xml script.
I am able to set up lxc container on fedora 18
i created a container using yum

yum --installroot=/containers/cont1 --releasever=18 install -y httpd openssh, bridge-utils, dhclient

cont1.xml
<domain type="lxc">
  <name>cont1</name>
  <vcpu placement="static">1</vcpu>
  <cputune>
    <shares>1024</shares>
    <period>1000000</period>
  </cputune>
  <memtune>
    <hard_limit unit="M">256</hard_limit>
    <soft_limit unit="M">32</soft_limit>
    <min_guarantee unit="M">64</min_guarantee>
  </memtune>
  <blkiotune>
    <weight>800</weight>
  </blkiotune>
  <memory unit="KiB">102400</memory>
  <os>
    <type>exe</type>
    <init>/bin/lxc_defaultinit.sh</init>
  </os>
  <clock offset="utc"/>
  <on_poweroff>destroy</on_poweroff>
  <on_reboot>restart</on_reboot>
  <on_crash>destroy</on_crash>
  <devices>
    <emulator>/usr/libexec/libvirt_lxc</emulator>
    <filesystem accessmode="passthrough" type="mount">
      <source dir="/containers/cont1/"/>
      <target dir="/"/>
    </filesystem>
    <interface type="bridge">
      <source bridge="br0"/>
    </interface>
    <console port="0" type="pty"/>
  </devices>
</domain>

Network setting at host
/etc/sysconfig/network-script/ifcfg-p2p1
TYPE="Ethernet"
DEVICE="p2p1"
BOOTPROTO="dhcp"
ONBOOT="yes"
BRIDGE="br0"
NM_CONTROLLED="no"

/etc/sysconfig/network-script/ifcfg-br0
DEVICE="br0"
TYPE="Bridge"
USERCTL="no"
ONBOOT="yes"
BOOTPROTO="dhcp"
NM_CONTROLLED="no"

Network setting at Guest
/containers/cont1/etc/sysconfig/network-script/ifcfg-eth0
TYPE="Ethernet"
DEVICE="eth0"
BOOTPROTO="static"
ONBOOT="yes"
GATEWAY=172.26.126.254
IPADDR=172.26.126.204

at host
/etc/fstab
tmpfs                   /dev/shm                tmpfs   defaults        0 0
devpts                  /dev/pts                devpts  defaults        0 0
sysfs                   /sys                    sysfs   defaults        0 0
proc                    /proc                   proc    defaults        0 0
none                   /sys/fs/cgroup           cgroup defaults       0 0

at guest
/containers/bin/lxc-defaultinit.sh
#!/bin/bash
export PATH=/usr/local/sbin:/usr/local/bin:/sbin:/bin:/usr/sbin:/usr/bin:/usr/lib
export PS1="[\u@\h \W]\$ "
export HOME="/root"
mount -t devtmpfs none /dev
mount -t devpts none /dev/pts
mount -t tmpfs none /dev/shm

mount -t sysfs none /sys
/etc/init.d/network start
exec /bin/bash



On Wed, Jul 31, 2013 at 3:03 PM, Daniel P. Berrange <berrange@redhat.com> wrote:
On Wed, Jul 31, 2013 at 12:46:58PM +0530, Aarti Sawant wrote:
> hello,
>
> i am new to lxc, i have created a lxc container on fedora 19
> i created a container rootfs of fedora 19 by using
> yum --installroot=/containers/test1 --releasever=19 install openssh
>
> test1.xml file for container test1
> <domain type="lxc">
>   <name>test1</name>
>   <vcpu placement="static">1</vcpu>
>   <cputune>
>     <shares>1024</shares>
>     <period>1000000</period>
>   </cputune>
>   <memtune>
>     <hard_limit unit="M">1024</hard_limit>
>     <soft_limit unit="M">128</soft_limit>
>     <min_guarantee unit="M">64</min_guarantee>
>   </memtune>
>   <blkiotune>
>     <weight>800</weight>
>   </blkiotune>
>   <memory unit="KiB">102400</memory>
>   <os>
>     <type>exe</type>
>     <init>/bin/bash</init>
>   </os>
>   <clock offset="utc"/>
>   <on_poweroff>destroy</on_poweroff>
>   <on_reboot>restart</on_reboot>
>   <on_crash>destroy</on_crash>
>   <devices>
>     <emulator>/usr/libexec/libvirt_lxc</emulator>
>     <filesystem accessmode="passthrough" type="mount">
>       <source dir="/containers/test1/"/>
>       <target dir="/"/>
>     </filesystem>

>     <filesystem accessmode="passthrough" type="mount">
>       <source dir="/containers/test1/var"/>
>       <target dir="/var"/>
>     </filesystem>
....snip more <filesystem> elements...

Why are you adding all these sub-mounts for /var, /dev, etc, etc?

You installed the entire OS tree into /containers/test1, so it
should be sufficient to just have that first <filesystem>
entry for '/'.  You'd only want to add extra mounts for
/var, etc if the directory on the host came from somewhere
outside the /containers/test1 location.

NB, also libvirt sets up /dev - you shouldn't try to
override it, or you'll loose access to the pre-populate
device nodes, which is probably what's causing your
failure.

>     <interface type="bridge">
>       <source bridge="br0"/>
>     </interface>
>     <console port="0" type="pty"/>
>   </devices>
> </domain>

Daniel
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