The laptop that initially gave the error has been reinstalled .The
output from an i386 machine is,

crw-rw----+ 1 root kvm 10, 232 Oct  3 09:36 /dev/kvm

I got the above from a machine that's giving the same error as the
originally reported one. This particular machine used to have working
kvm when it was precise and the upgrade to quantal had some issues and
there fore I had to re-install kvm in it.

These are the other outputs in this machine
kvm ok
INFO: /dev/kvm exists
KVM acceleration can be used
and 
grep libvirt /etc/group also had the username in it

thanks

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https://bugs.launchpad.net/bugs/1057024

Title:
  internal error Process exited while reading console log output: char
  device redirected to /dev/pts/1 error when creating a vm

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