diff --git a/tempest/tests/test_volumes_list.py b/tempest/tests/test_volumes_list.py
index 01ce394..0a2e4e6 100644
--- a/tempest/tests/test_volumes_list.py
+++ b/tempest/tests/test_volumes_list.py
@@ -1,43 +1,87 @@
-from nose.plugins.attrib import attr
+# vim: tabstop=4 shiftwidth=4 softtabstop=4
+
+# Copyright 2012 OpenStack, LLC
+# All Rights Reserved.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
 import unittest2 as unittest
+
+import nose
+
 from tempest import openstack
 from tempest.common.utils.data_utils import rand_name
 
 
 class VolumesTest(unittest.TestCase):
 
+    """
+    This test creates a number of 1G volumes. To run successfully,
+    ensure that the backing file for the volume group that Nova uses
+    has space for at least 3 1G volumes! Devstack, by default, creates
+    a 2G volume backing file, which causes this test to fail because
+    the third volume gets created in ERROR state (out of disk space in
+    volume group...). If you are running a Devstack environment, set
+    VOLUME_BACKING_FILE_SIZE=4G in your localrc
+    """
+
     @classmethod
     def setUpClass(cls):
         cls.os = openstack.Manager()
         cls.client = cls.os.volumes_client
-        #Create 3 Volumes
+        # Create 3 Volumes
         cls.volume_list = list()
         cls.volume_id_list = list()
         for i in range(3):
-            v_name = rand_name('Name-')
+            v_name = rand_name('volume')
             metadata = {'Type': 'work'}
-            resp, volume = cls.client.create_volume(size=1,
-                                                     display_name=v_name,
-                                                     metadata=metadata)
-            cls.client.wait_for_volume_status(volume['id'],
-                                               'available')
-            resp, volume = cls.client.get_volume(volume['id'])
-            cls.volume_list.append(volume)
-            cls.volume_id_list.append(volume['id'])
+            try:
+                resp, volume = cls.client.create_volume(size=1,
+                                                         display_name=v_name,
+                                                         metadata=metadata)
+                cls.client.wait_for_volume_status(volume['id'],
+                                                   'available')
+                resp, volume = cls.client.get_volume(volume['id'])
+                cls.volume_list.append(volume)
+                cls.volume_id_list.append(volume['id'])
+            except:
+                if cls.volume_list:
+                    # We could not create all the volumes, though we were able
+                    # to create *some* of the volumes. This is typically
+                    # because the backing file size of the volume group is
+                    # too small. So, here, we clean up whatever we did manage
+                    # to create and raise a SkipTest
+                    for volume in cls.volume_list:
+                        cls.client.delete_volume(volume)
+                    msg = ("Failed to create ALL necessary volumes to run "
+                           "test. This typically means that the backing file "
+                           "size of the nova-volumes group is too small to "
+                           "create the 3 volumes needed by this test case")
+                    raise nose.SkipTest(msg)
+                raise
 
     @classmethod
     def tearDownClass(cls):
-        #Delete the created Volumes
-        for i in range(3):
-            resp, _ = cls.client.delete_volume(cls.volume_id_list[i])
+        # Delete the created Volumes
+        for volume in cls.volume_list:
+            resp, _ = cls.client.delete_volume(volume['id'])
 
-    @attr(type='smoke')
     def test_volume_list(self):
         """Should return the list of Volumes"""
-        #Fetch all Volumes
+        # Fetch all Volumes
         resp, fetched_list = self.client.list_volumes()
         self.assertEqual(200, resp.status)
-        #Now check if all the Volumes created in setup are in fetched list
+        # Now check if all the Volumes created in setup are in fetched list
         missing_volumes =\
         [v for v in self.volume_list if v not in fetched_list]
         self.assertFalse(missing_volumes,
@@ -45,7 +89,6 @@
                          % ', '.join(m_vol['displayName']
                                         for m_vol in missing_volumes))
 
-    @attr(type='smoke')
     def test_volume_list_with_details(self):
         """Should return the list of Volumes with details"""
         #Fetch all Volumes