local deployment with btrfs fails with strange out of space errors

This is on precise using the juju ppa, deployment is trivial using
mysql as smoke test.

$ dpkg -l juju
ii juju 0.6.0.1+bzr598-0 next generation service orchestration system

[juju config]
default: ppetraki-btrfs
environments:
  ppetraki-btrfs:
    type: local
    control-bucket: a965ff99-57c8-44ab-82fc-1e4454f7f03c
    admin-secret: 9caa27c3-dce1-4156-8bb1-fa66bd8d4d00
    default-series: precise
    juju-origin: ppa
    data-dir: /home/ppetraki/Sandbox/juju-ppetraki-btrfs
    authorized-keys-path: /home/ppetraki/.ssh/id_rsa.pub

[reproduction steps]
$ juju bootstrap
$ juju deploy mysql

[observations]
watching juju log (attached) fails with this error everytime.

121101 14:19:23 InnoDB: Compressed tables use zlib 1.2.3.4^M
^M
2012-11-01 10:19:23,172 unit:mysql/0: hook.output INFO: ^G/usr/sbin/mysqld: Can't create/write to file '/tmp/ibFMf7Wn' (Errcode: 13)^M
121101 14:19:23 InnoDB: Error: unable to create temporary file; errno: 13^M
121101 14:19:23 [ERROR] Plugin 'InnoDB' init function returned error.^M
121101 14:19:23 [ERROR] Plugin 'InnoDB' registration as a STORAGE ENGINE failed.^M
^M

I've tried accessing the container, even restarting it, but I can't ssh in nor can I access
it from the console. What I found is that it logs in and out really fast, bailing out
on the fact that /home/ubuntu doesn't exist.

ppetraki-ppetraki-btrfs-mysql-0 login: ubuntu^M^M
Password: ^M^M
Last login: Thu Nov 1 14:26:30 UTC 2012 on tty1^M^M
Welcome to Ubuntu 12.04.1 LTS (GNU/Linux 3.2.0-32-generic x86_64)^M^M
^M^M
 * Documentation: https://help.ubuntu.com/^M^M
^M^M
  System information as of Thu Nov 1 14:29:21 UTC 2012^M^M
^M^M
  System load: 0.38 Processes: 23^M^M
  Usage of /home: unknown Users logged in: 0^M^M
  Memory usage: 55% IP address for eth0: 10.0.3.76^M^M
  Swap usage: 11%^M^M
^M^M
  Graph this data and manage this system at https://landscape.canonical.com/^M^M
^M^M
Get cloud support with Ubuntu Advantage Cloud Guest^M^M
  http://www.ubuntu.com/business/services/cloud^M^M
*** System restart required ***^M^M
Unable to cd to '/home/ubuntu'^M^M
^[[r^[[H^[[J^M^M^M

Other charms fail in a similarly strange manner, I have yet to deploy a local
charm successfully.

Also noticed this from syslog.

Nov 1 10:31:06 thinkpadt510 kernel: [87258.982719] type=1400 audit(1351780266.668:139): apparmor="DENIED" operation="mount" info="failed flags match" error=-13 parent=15848 profile="lxc-container-default" name="/" pid=15863 comm="mount" flags="ro, remount"
Nov 1 10:31:06 thinkpadt510 kernel: [87258.984502] type=1400 audit(1351780266.668:140): apparmor="DENIED" operation="mount" info="failed flags match" error=-13 parent=15848 profile="lxc-container-default" name="/" pid=15864 comm="mount" flags="ro, remount"
Nov 1 10:31:06 thinkpadt510 kernel: [87258.987124] type=1400 audit(1351780266.672:141): apparmor="DENIED" operation="mount" info="failed flags match" error=-13 parent=15848 profile="lxc-container-default" name="/" pid=15865 comm="mount" flags="ro, remount"

There's no apport hook for juju so also attached is an offline report for lxc.