See bug #732442 - the uid:gid 161:161 has been reserved for the glance user
Using it should be a matter of simply passing -u 161 to useradd and -g 161 to groupadd
openstack-glance-2011.3-0.4.992bzr.fc16 has been submitted as an update for Fedora 16.
openstack-glance-2011.3-0.4.992bzr.fc16 has been pushed to the Fedora 16 testing repository.
openstack-glance-2011.3-0.5.d4.fc16 has been submitted as an update for Fedora 16.
openstack-glance-2011.3-0.5.d4.fc16 has been pushed to the Fedora 16 stable repository. If problems still persist, please make note of it in this bug report.