dkms module fails to build with 3.7/3.8 kernel

    if test ! -e "$KBUILD"/include/linux/version.h || \
       (test ! -e "$KBUILD"/include/linux/autoconf.h && \
        test ! -e "$KBUILD"/include/generated/autoconf.h); then
    AC_MSG_ERROR([Linux kernel source in $KBUILD is not configured])
    fi

This bug was fixed in the package openvswitch - 1.9.0~git20130115.ca71f5b-0ubuntu1

---------------
openvswitch (1.9.0~git20130115.ca71f5b-0ubuntu1) raring; urgency=low

  * New upstream snapshot based on branch-1.9:
    - d/patches: Dropped all previous patches as all found upstream.
    - d/*: Synced packaging with upstream packaging changes.
    - d/control: Add libtool to BD's to support use of snapshot.
  * Fix compatibility with Linux 3.8 (LP: #1098650):
    - d/p/support-linux-3.8.patch:
      Accept Linux 3.8 as a compatible kernel version.
    - d/p/linux-Makefile.main.in-acinclude-preparation-for-lin.patch:
      Adjust autoconf checks to correctly detect new kernel header file names.
  * Fix python test issues caused by long UNIX socket paths:
    - d/p/handle-unix-socket-long-paths.patch:
      Workaround long UNIX socket paths by using /proc/self/fd on Linux.
 -- James Page <email address hidden> Wed, 16 Jan 2013 11:22:40 +0000

I have the same bug in Precise (12.04.3) with linux-image-generic-lts-raring_3.8.0.32.32_amd64.deb and openvswitch-switch 1.4.0-1ubuntu1.5

# apt-get install --reinstall openvswitch-switch openvswitch-datapath-dkms openvswitch-common
Reading package lists... Done
Building dependency tree
Reading state information... Done
0 upgraded, 0 newly installed, 3 reinstalled, 0 to remove and 0 not upgraded.
Need to get 0 B/3 827 kB of archives.
After this operation, 0 B of additional disk space will be used.
(Reading database ... 132279 files and directories currently installed.)
Preparing to replace openvswitch-common 1.4.0-1ubuntu1.5 (using .../openvswitch-common_1.4.0-1ubuntu1.5_amd64.deb) ...
Unpacking replacement openvswitch-common ...
Preparing to replace openvswitch-datapath-dkms 1.4.0-1ubuntu1.5 (using .../openvswitch-datapath-dkms_1.4.0-1ubuntu1.5_all.deb) ...

------------------------------
Deleting module version: 1.4.0
completely from the DKMS tree.
------------------------------
Done.
Unpacking replacement openvswitch-datapath-dkms ...
Preparing to replace openvswitch-switch 1.4.0-1ubuntu1.5 (using .../openvswitch-switch_1.4.0-1ubuntu1.5_amd64.deb) ...
Unpacking replacement openvswitch-switch ...
Processing triggers for man-db ...
Processing triggers for ureadahead ...
Setting up openvswitch-common (1.4.0-1ubuntu1.5) ...
Setting up openvswitch-datapath-dkms (1.4.0-1ubuntu1.5) ...

Creating symlink /var/lib/dkms/openvswitch/1.4.0/source ->
                 /usr/src/openvswitch-1.4.0

DKMS: add completed.

Kernel preparation unnecessary for this kernel. Skipping...

Building module:
cleaning build area....(bad exit status: 2)
./configure --with-linux='/lib/modules/3.8.0-32-generic/build' && make -C datapath/linux.....(bad exit status: 1)
Error! Bad return status for module build on kernel: 3.8.0-32-generic (x86_64)
Consult /var/lib/dkms/openvswitch/1.4.0/build/make.log for more information.

# less /var/lib/dkms/openvswitch/1.4.0/build/make.log
....
checking whether gcc accepts -Wstrict-prototypes... yes
checking whether gcc accepts -Wold-style-definition... yes
checking whether gcc accepts -Wmissing-prototypes... yes
checking whether gcc accepts -Wmissing-field-initializers... yes
checking whether gcc accepts -Wno-override-init... yes
checking whether gcc accepts -Wno-unused... yes
checking whether gcc accepts -Wno-unused-parameter... yes
checking target hint for cgcc... x86_64
checking whether make has GNU make $(if) extension... yes
checking for Linux build directory... /lib/modules/3.8.0-32-generic/build
checking for Linux source directory... /lib/modules/3.8.0-32-generic/build
checking for kernel version... 3.8.13
configure: error: Linux kernel source in /lib/modules/3.8.0-32-generic/build is not configured

The 1.4.x series is not compatible with the lts-raring kernel.

Please read http://javacruft.wordpress.com/2013/08/21/openvswitch-for-ubuntu-12-04-3-lts/ for details on which packages to use in this case.

devstack installation comes with openvswitch. Because openvswitch-datapath-dkms won't work with current kernel from ubuntu 12.04.3.
http://javacruft.wordpress.com/2013/08/21/openvswitch-for-ubuntu-12-04-3-lts/
I log it as a bug. Devstack should use other packages.