It worked fine with 1.0.5.2:

2013-07-24 19:44:32.979+0000: starting up
PATH=/usr/local/sbin:/usr/local/bin:/usr/sbin:/usr/bin LIBVIRT_DEBUG=3 LIBVIRT_LOG_OUTPUTS=3:stderr /usr/libexec/libvirt_lxc --name xkh1g2 --console 23 --security
=selinux --handshake 26 --background --veth veth1 --veth veth3
PATH=/bin:/sbin TERM=linux container=lxc-libvirt container_uuid=933797fb-98d1-44c8-a8d4-bff55e79121c LIBVIRT_LXC_UUID=933797fb-98d1-44c8-a8d4-bff55e79121c LIBVIRT
_LXC_NAME=xkh1g2 /usr/libexec/libvirt-sandbox-init-lxc
2013-07-24 19:44:33.711+0000: 1586: info : libvirt version: 1.0.5.2, package: 1.fc19 (Fedora Project, 2013-06-12-22:00:45, buildvm-26.phx2.fedoraproject.org)
2013-07-24 19:44:33.711+0000: 1586: error : virFileReadAll:472 : Failed to open file '/sys/fs/cgroup/memory/machine/xkh1g2.libvirt-lxc/memory.memsw.limit_in_bytes
': No such file or directory
2013-07-24 19:44:33.711+0000: 1586: error : virFileReadAll:472 : Failed to open file '/sys/fs/cgroup/memory/machine/xkh1g2.libvirt-lxc/memory.memsw.usage_in_bytes
': No such file or directory

After upgrading to 1.0.5.4:

2013-08-06 11:27:19.716+0000: starting up
PATH=/usr/local/sbin:/usr/local/bin:/usr/sbin:/usr/bin LIBVIRT_DEBUG=3 LIBVIRT_LOG_OUTPUTS=3:stderr /usr/libexec/libvirt_lxc --name xkh1g2 --console 26 --security=selinux --handshake 29 --background --veth veth1 --veth veth3
PATH=/bin:/sbin TERM=linux container=lxc-libvirt container_uuid=62da5331-38b3-4627-822d-bb06b0cc95c3 LIBVIRT_LXC_UUID=62da5331-38b3-4627-822d-bb06b0cc95c3 LIBVIRT_LXC_NAME=xkh1g2 /usr/libexec/libvirt-sandbox-init-lxc
2013-08-06 11:27:19.930+0000: 1: info : libvirt version: 1.0.5.4, package: 1.fc19 (Fedora Project, 2013-07-12-17:22:23, buildvm-03.phx2.fedoraproject.org)
2013-08-06 11:27:19.930+0000: 1: error : lxcContainerPopulateDevices:861 : Failed to make device /tty: Read-only file system
2013-08-06 11:27:19.931+0000: 2192: info : libvirt version: 1.0.5.4, package: 1.fc19 (Fedora Project, 2013-07-12-17:22:23, buildvm-03.phx2.fedoraproject.org)
2013-08-06 11:27:19.931+0000: 2192: error : virLXCControllerRun:1481 : error receiving signal from container: Input/output error
error receiving signal from container: Input/output error
2013-08-06 11:27:19.966+0000: 2192: error : virCommandWait:2353 : internal error Child process (ip link del veth1) unexpected exit status 1: Cannot find device "veth1"

2013-08-06 11:27:19.977+0000: 2192: error : virCommandWait:2353 : internal error Child process (ip link del veth3) unexpected exit status 1: Cannot find device "veth3"