Latest updates seem to have fixed this:
libvirt0 0.4.6-5ubuntu1
virt-manager 0.6.0-6ubuntu1
** Changed in: libvirt (Ubuntu)
Status: New = Fix Released
--
virDomainCreate forbidden for read only access when using virt-manager
https://bugs.launchpad.net/bugs/300721
You received this bug
This only appears to affect virt-manager. virsh works just fine and a
suitable workaround is:
$ virsh start vm name
$ virt-viewer -c qemu:///system vm name
(some people may use '-c qemu:///session' instead).
** Summary changed:
- virDomainCreate forbidden for read only access
+ virDomainCreate