Index: cloud-init-0.7.8/cloudinit/distros/__init__.py
===================================================================
--- cloud-init-0.7.8.orig/cloudinit/distros/__init__.py
+++ cloud-init-0.7.8/cloudinit/distros/__init__.py
@@ -504,8 +504,11 @@ class Distro(object):
             # about long names.
             util.subp(['passwd', '-l', name])
         except Exception as e:
-            util.logexc(LOG, 'Failed to disable password for user %s', name)
-            raise e
+            if e.exit_code != 3:
+                util.logexc(LOG, 'Failed to disable password for user %s', name)
+                raise e
+            else:
+                util.logexc(LOG, 'Password access already locked for user %s', name)
 
     def set_passwd(self, user, passwd, hashed=False):
         pass_string = '%s:%s' % (user, passwd)