Hi Derek,
When you select the "Create new volume" in Horizon (assumption), there is a cinder volume created which contains the image (bootable) and the instance is backed by it.
When you perform the snapshot creation operation on that instance, a cinder snapshot of that volume is created and a glance image is registered pointing to it.
Based on the scenario you described, the cinder snapshot operation seems to be failing. I would suggest you to check the following:
1) Which OpenStack version are you using?
1) Which cinder backend are you using?
2) Checking the nova logs and cinder logs (api, sch, vol) for any possible errors
3) Try to create a cinder volume, attach it, and try to snapshot it (Note that we've removed the requirement of a force flag since xena so you will need to provide force=True if you're on a pre-xena version).
We've faced a recent issue related to snapshot create operation[1], maybe that's related.
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Rajat Dhasmana