Create CloudStack template manually

template.sh

# Create template from http://download.cloud.com/releases/2.0.0/UbuntuServer-10-04-64bit.vhd.bz2
# Add a disk offering, assuming additional disk is at /dev/xvdb

# Partition xvdb appropiately / and a swap (5000MB), create filesystem for /, mount it under /mnt

# Change to root and rsync on disk data to new intended root aka /mnt
cd /
rsync -apv --exclude mnt --exclude proc --exclude sys . mnt/
mkdir mnt/{sys,proc}
# change root to /mnt
chroot /mnt
#mount proc and sys
mount -t proc none /proc
mount -t sysfs none /sys

# Update / and swap fstab entry to new device uuids (see list from blkid command)
blkid
vi /etc/fstab
# Make sure root UUID entry from fstab matches the one in /boot/grub/grub.cfg
update-grub
grub-install /dev/xvdb

# Update TZ to UTC
dpkg-reconfigure tzdata

# delete user
userdel -f -r user

# Exit from the chroot
exit

fdisk /dev/svdb #Disable bootflag on partition 1
fdisk /dev/xdva #Enable boot flag on partition 1

# edit /etc/default/grub and set GRUB_DEFAULT=6
vi /etc/default/grub
udpate-grub

# reboot the VM and see it comes up
reboot

# Take snapshot from DATA disk and create template from CloudStack UI