Hi Ori,
I'm unable to reproduce it either on oVirt master or latest 3.5 RPMs (ovirt-engine-3.5.0-0.0.master.20140821064931.gitb794d66). On both version I was able to create DC with local storage, to add host to it and to add local storage.
Did you configure something special in this local DC or host (from engine.log I see you did a lot of things before local DC operation where this error appeared)?
Created attachment 926035 [details] vdsm+engine logs Description of problem: 2014-08-12 13:56:24,208 ERROR [org.ovirt.engine.core.vdsbroker.vdsbroker.PollVDSCommand] (org.ovirt.thread.pool-8-thread-28) [280ba52c] java.util.concurrent.ExecutionException: java.lang.re flect.InvocationTargetException 2014-08-12 13:56:24,214 ERROR [org.ovirt.engine.core.vdsbroker.vdsbroker.PollVDSCommand] (org.ovirt.thread.pool-8-thread-28) [280ba52c] Command PollVDSCommand(HostName = vdsc, HostId = 0d8b 639c-1e94-489a-a710-d1cd52337d75) execution failed. Exception: RuntimeException: java.util.concurrent.ExecutionException: java.lang.reflect.InvocationTargetException 2014-08-12 13:56:24,840 ERROR [org.ovirt.engine.core.vdsbroker.vdsbroker.PollVDSCommand] (org.ovirt.thread.pool-8-thread-28) [280ba52c] org.ovirt.engine.core.vdsbroker.vdsbroker.VDSRecoveri ngException: Recovering from crash or Initializing 2014-08-12 13:56:24,844 ERROR [org.ovirt.engine.core.vdsbroker.vdsbroker.PollVDSCommand] (org.ovirt.thread.pool-8-thread-28) [280ba52c] Command PollVDSCommand(HostName = vdsc, HostId = 0d8b 639c-1e94-489a-a710-d1cd52337d75) execution failed. Exception: VDSRecoveringException: Recovering from crash or Initializing Version-Release number of selected component (if applicable): rc1 How reproducible: 100% Steps to Reproduce: 1.create local dc 2.add host Actual results: engine throws java lang exception Expected results: no errors Additional info: