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I started from scratch - this time I executed "nova-manage network create" on two HostA for and on HostB for networks.

Only difference from previous scenario is that now gw-xxxx interface was created on HostB

But still running into same set of issues i.e. :

  1. VM doesn't have eth1 when it come up
  2. When eth1 added manually to /etc/network/interfaces (of VM) followed by "sudo ifup eth1" I still get "No lease, failing"
  3. nova list shows 10.0.9.x assigned to VM but VM doesn't really have it (Hence I can't ssh using 10.0.9.x IP)

dnsmasq for 10.0.9.x is running on HostB (as expected)