Unbelievably, there is a bug on Nexus 7000 that can prevent you from applying any ACLs to the interface. The result is that the following command gives TCAM allocation failures.
ip access-group MYACL in
https://bst.cloudapps.cisco.com/bugsearch/bug/CSCtz71765/?referring_site=bugquickviewredir
The solution is to use the following command:
hardware access-list resource feature bank-mapping
Voila!
I was quite proud of the fact that I found the solution in 20 minutes.
