CloudStack is importing as Local storage any XenServer SR that is of type LVM or EXT. This causes a problem when one wants to use both Direct attach storage and local storage. Moreover, CloudStack was not importing all of the local storage that a host has available when local storage is enabled. It was only importing the First SR it sees.
To fix the first problem we started ignoring SRs that have the flag shared=true when discovering local storages. SRs configured to be shared are used as direct attached storage, and therefore should not be imported again as local ones.
To fix the second problem, we started loading all Local storage and importing them accordingly to ACS.