Ok, so here is the set up:
I've got fedora 14 running inside latest virtualbox with nat and networking is working. Inside this fedora I have installed openvz from the rhel6 repository and have setup a Suse 11.1 x86 VE. I'm using venet device and have also set up the following iptables rules:
iptables -t nat -A POSTROUTING -o eth0 -j MASQUERADE
From the VE I can ping the hardware node, but I can't get past the hw node. Ping from VE return "icmp host unreachable" and by sniffing venet0:0 with tcpdump I can see traffic coming from the VE.
Am I missing something?