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
Where did you get the libvirt 0.8.8 package for 10.04 ?
The version of libvirt in 10.04 is 0.7.5-5ubuntu27.11
(https://launchpad.net/ubuntu/+source/libvirt).
>From the error message that you've given, I would guess that the newer
libvirt needs a newer kernel, or other dependency that isn't there