The 'error' was that the virtual server was extremely slow. Taking over
200 seconds to boot, when the physical server takes only about 14
seconds. I eventually found the problem. the module kvm_intel wasn't
being loaded by the physical server, and so the virtualization was
extremely inefficient. It turns out it was a bios update that switched
the virtualization off in the bios. Once that was changed back, all the
problems went away.

The warning was the only thing I could find that might point to what
could be wrong. Until I checked and found that there was no file:
/dev/kvm, and modprobe kvm_intel gave an error. Then a tail of dmesg
showed that the bios setting was wrong.

-- 
[intrepid] kernel bug
https://bugs.launchpad.net/bugs/337551
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