Plesk 12.x / Linux :: Chroot -> Too Many Levels Of Symbolic Links

I am testing out Plesk control panel 12 - looks promising, but the moment I hit chroot-ed environment, many things go wrong.

Set up:

Virutal server, running linux (64 bit Ubuntu 14.04 Server LTS);
Plesk Control Panel 12.0.18, Update #14;
Currently running on a trial license;
Brand new installation on a dedicated server;

I have two disks, one is for system stuff, plus plesk; second disk is supposed to be dedicated to /var and /home

root@testthing:/var/log# df -h
Filesystem Size Used Avail Use% Mounted on
/dev/vda1 40G 8.7G 29G 24% /
....
/dev/vdb1 493G 2.9G 465G 1% /disk2

[Code] .....

(to save place, I've removed the regular stuff that is everywhere and makes not difference for this case ... I think)

The plesk installation went just fine; update ran fine; I can register customers, their websites run fine ... as long as they get no shell at all, or regular shell to the server.

BUT: we need to jail all our customers under chroot. If that is not possible, we can't use Plesk.

I created a Service plan cloned form the Default domain plan and changed only to give the users ssh access to the server with a chroot env.

When I try to register a new client with this new service plan, it fails with lots of error messages (one per directory it tries to make), like this:

chrootmng: cannot set permissions for "/var/www/vhosts/demowh1.blah.blah/lib":Too many levels of symbolic links
...
Dropping the GUI and xperimenting in a shell, as root: If I run:
root@testthing:/usr/local/psa/admin/sbin# ./chrootmng --create --source=/var/www/vhosts/chroot/ --target=/var/www/vhosts/demowh1.blah.blah
open_basedir_with_nofollow: opeat failed: `var', Too many levels of symbolic links

[Code] ....

But, if I run it like this:

root@testthing:/usr/local/psa/admin/sbin# ./chrootmng --create --source=/var/www/vhosts/chroot/ --target=/disk2/var/www/vhosts/demowh1.blah.blah

It proceeds to make a copy of all directories where it should.

So, at this point I am pretty sure that the problem is my link between /var and /disk2.

Still, I want to keep the user data on a separate disk from the system/plesk data.