10.04 has a new kernel that contains ~11 kvm related patches.  Can you
confirm this issue on the latest kernel?  2.6.32-21-server?

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qemu-kvm and guest kernel < 2.6.24 sporadic boot fail: Kernel panic - not 
syncing: IO-APIC + timer doesn't work!
https://bugs.launchpad.net/bugs/559088
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