According to the build log 
http://launchpadlibrarian.net/23783818/buildlog_ubuntu-jaunty-i386.qemu_0.10.0-1ubuntu1_FULLYBUILT.txt.gz
 kvm support has not been (correctly) built in. The configure script states:
KVM support       no - (#error Missing KVM capability 
KVM_CAP_DESTROY_MEMORY_REGION_WORKS)

Any ideas?

-- 
qemu cannot use KVM
https://bugs.launchpad.net/bugs/348391
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