I have downloaded the cloud image precise-server-cloudimg-
amd64-disk1.img

1. convert to raw

$ qemu-img convert -O raw precise-server-cloudimg-amd64-disk1.img
precise-server-cloudimg-amd64-disk1.raw

2. dd it onto the hard drive.

# dd if=precise-server-cloudimg-amd64-disk1.raw of=/dev/virtualvg/vm4

the VM does not boot again hangs with 100% cpu. (screenshot)

I have found similar issues:
https://www.redhat.com/archives/libvirt-users/2012-February/msg00106.html 
(resolved but trivial error)
http://serverfault.com/questions/366085/kvm-virtual-machine-hangs-at-boot-using-vmbuilder
 (not resolved)


** Attachment added: "top utility screenshot"
   
https://bugs.launchpad.net/ubuntu/+source/libvirt/+bug/1029889/+attachment/3240871/+files/top.png

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https://bugs.launchpad.net/bugs/1029889

Title:
  LVM Based KVM VM taking 100% CPU on first start and hangs.

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