Creating lxc container was a cakewalk on Debian. My problem was in Ubuntu.
I tried your advise Giggi..This is what i got:
I: Retrieving libncurses5 5.9+20140118-1ubuntu1
I: Validating libncurses5 5.9+20140118-1ubuntu1
I: Retrieving libncursesw5 5.9+20140118-1ubuntu1
I: Validating libncursesw5 5.9+20140118-1ubuntu1
I: Retrieving libnewt0.52 0.52.15-2ubuntu5
I: Validating libnewt0.52 0.52.15-2ubuntu5
I: Retrieving libnih-dbus1 1.0.3-4ubuntu25
I: Validating libnih-dbus1 1.0.3-4ubuntu25
I: Retrieving libnih1 1.0.3-4ubuntu25
I: Validating libnih1 1.0.3-4ubuntu25
I: Retrieving libp11-kit0 0.20.2-2ubuntu2
I: Validating libp11-kit0 0.20.2-2ubuntu2
I: Retrieving libpam-cap 1%3a2.24-0ubuntu2
I: Validating libpam-cap 1%3a2.24-0ubuntu2
I: Retrieving libpam-modules 1.1.8-1ubuntu2
I: Validating libpam-modules 1.1.8-1ubuntu2
I: Retrieving libpam-modules-bin 1.1.8-1ubuntu2
...
This continued for a long time..later i had to stop it. Anyways i am now working on Debian.
Thanx again.