Error creating GCloud DNS Managed Zone -'parameters.project' resource does not exist

[GoogleCodeExporter]

What steps will reproduce the problem?
$ gcloud auth login

You are now logged in as [andrexxxxx@xxxxx.com].
Your current project is [rugged-pilot-354]. 

----So I try to create a dns zone ----

$ gcloud dns managed-zone create --dns_name="host1.com." --description=" zone 
for host1.com" "host1.com"

Creating {'dnsName': 'host1.com.', 'name': 'host1.com',
'description': ' zone for host1.com'} in
rugged-pilot-354

Do you want to continue (Y/n)? y

------------------------------------------

What is the expected output? What do you see instead?
Expect a "Zone created "  message.

Instead I get this error:

ERROR: (gcloud.dns.managed-zone.create) ResponseError: status=404, code=Not 
Found, reason(s)=notFound
message=The 'parameters.project' resource named 'rugged-pilot-354' does not 
exist

--- gcloud config list  - It seems I have the right project----

[ajf@host1 ~]$ gcloud config list
[core]
account = andrXXXX@xxxx.com
disable_usage_reporting = False
project = rugged-pilot-354
user_output_enabled = True 

What is the output of 'gcloud version'?
$ gcloud version
Google Cloud SDK 0.9.27

app-engine-python 1.9.6
app-engine-python-extras 1.9.6
bq 2.0.18
bq-nix 2.0.18
compute 2014.06.17
core 2014.06.17
core-nix 2014.06.17
dns 2014.04.30
gae-python 2014.05.06
gcutil 1.16.1
gcutil-nix 1.16.1
gsutil 4.3
gsutil-nix 4.3
sql 2014.06.17

Please provide any additional information below.

I enabled the GCloud DNS API in the project prior to creating the zone. 

Original issue reported on code.google.com by andrewfr...@gmail.com on 23 Jun 2014 at 4:35

[GoogleCodeExporter]

I have the exact same behavior.  Did you figure out what was wrong?

Original comment by magnus.a...@mollyware.se on 2 Jul 2014 at 9:20

[GoogleCodeExporter]

Haven' t figured it out yet. I think I need to specify  a project name in
the zone create command.
For now I am using Amazon AWS Route 53 instead. For a small number of
records ( about 10) it is much easier.

Original comment by andrewfr...@gmail.com on 2 Jul 2014 at 1:38