This error is annoying, in a Virtuozzo KB entry about this ip tables nat problem they say the kernel needs to be ugpraded:
The node runs 2.6.18-x kernel older than 2.6.18-028stab053.10.
NAT module does not work in container, you get "can't initialize iptables table 'nat'" error:
# iptables -t nat........
To enable Fuse to work inside a OpenVZ container it's very simple (although some people say it can't be done).
Remember that on your HN(HostNode) for OpenVZ, Fuse must be installed and the module must be loaded for this to work. In addition remember that you need the Fuse package installed inside the container of course.
vzctl set 2000 --devices c:10:229:rw --save
vzctl exec 2000 mknod /dev/fuse c 10 229
The part that most people forget........