Privilege flag issue with docker in docker CI build and GitHost-ed Repo and Runner

We have a paid-for GitLab repo and runner hosted through githost.io and get errors when running a docker in docker CI build

> gitlab-ci-multi-runner 1.2.0 (3a4fcd4)
> Using Docker executor with image docker:git ...
> Pulling docker image docker:dind ...
> Starting service docker:dind ...
> Waiting for services to be up and running...

> *** WARNING: Service runner-2dcde9eb-project-2-concurrent-0-docker probably didn't start properly.

> API error (500): Cannot link to a non running container: /runner-2dcde9eb-project-2-concurrent-0-docker AS /runner-2dcde9eb-project-2-concurrent-0-docker-wait-for-service/runner-2dcde9eb-project-2-concurrent-0-docker

> 2016-06-08T14:23:36.490798742Z mount: mounting none on /sys/kernel/security failed: Permission denied
> 2016-06-08T14:23:36.490908529Z Could not mount /sys/kernel/security.
> 2016-06-08T14:23:36.490928541Z AppArmor detection and --privileged mode might break.
> 2016-06-08T14:23:36.490937404Z mount: mounting none on /tmp failed: Permission denied

> *********

It looks as though this might be related to not setting a “privileged flag” (endnote of https://about.gitlab.com/2016/05/23/gitlab-container-registry/) – can anyone confirm that and/or help me find and set that flag?

Thanks!
Tim