This bug was fixed in the package libvirt - 0.8.8-1ubuntu6.7

---------------
libvirt (0.8.8-1ubuntu6.7) natty-proposed; urgency=low

  * lxc_controller: use our own unlocpt+grantpt rather than glibc's, which
    can't handle opening a pty in a devpts not mounted at /dev/pts.
    (LP: #863629)
 -- Serge Hallyn <serge.hal...@ubuntu.com>   Tue, 01 Nov 2011 18:00:51 +0000

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https://bugs.launchpad.net/bugs/823638

Title:
  Please put comment in /etc/default/libvirt-bin or remove it from the
  .deb

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