SquashFS image as rootfs in LXC

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http://unix.stackexchange.com – Is it possible to use a SquashFS filesystem as an LXC rootfs? I can mount an ext3 image as a rootfs just by setting lxc.rootfs to the filename, but if it's any other type of image, lxc-start just says that it can't mount an ext3 filesystem. The lxc.conf man page doesn't suggest any way to specify the filesystem type. Additionally, if I get past that stage, can you mount other loopback filesystems in the container just by using lxc.mount.entry entries with 'loop' in the options field? (HowTos)