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I tried similar devstack configuration using ml2, ovs and vxlan on ubuntu 13.10. I had some problems with ovs not creating the tunnels properly. After some troubleshooting without success I finally updated openvswitch to a more recent version. The key package to update was openvswitch-datapath-dkms which seemed to be faulty on my ubuntu distribution. Now using version ovs 1.10.2 and everything works smoothly.