I have the same issue with a fresh 10.04 box. I tried downgrading these
packages:

arcus@office:~$ sudo apt-get install libvirt-bin=0.7.5-5ubuntu27.13 
libvirt0=0.7.5-5ubuntu27.13
Reading package lists... Done
Building dependency tree       
Reading state information... Done
The following packages were automatically installed and are no longer required:
  open-iscsi libxml2-utils apache2-mpm-worker libaprutil1-ldap open-iscsi-utils 
kpartx apache2 ebtables apache2.2-common libaprutil1-dbd-sqlite3 ajaxterm 
apache2.2-bin ssl-cert kvm curl
Use 'apt-get autoremove' to remove them.
Suggested packages:
  policykit-1
The following packages will be REMOVED
  nova-compute python-libvirt

and then when I put nova-compute back:

arcus@office:~$ sudo apt-get install nova-compute
Reading package lists... Done
Building dependency tree       
Reading state information... Done
The following packages were automatically installed and are no longer required:
  libhal-storage1 libx86-1 vbetool libhal1 hal pm-utils smartdimmer radeontool 
hal-info
Use 'apt-get autoremove' to remove them.
The following extra packages will be installed:
  libvirt-bin libvirt0 python-libvirt

so getting nowhere. I'm using:

deb http://ppa.launchpad.net/nova-core/release/ubuntu lucid main

I think this is what is causing my problems with contacting the metadata
server. No matter that the iptables rules is in place, curl
169.254.169.254 fails. Might be the cause of the many messages about
uncontactable metadata at the moment.

-Mark

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https://bugs.launchpad.net/bugs/794978

Title:
  libvirt fails to start on ubuntu 10.04

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