Quoting Parameswaran Sivatharman (para.s...@canonical.com):
> The bios setting indicate that virtualization is enabled and cpuinfo is
> attached.
> 
> qemu-img create x.img 1G
> kvm -hda x.img
> 
> ceate the image successfully and brings up the kvm window.

But - to be sure - can you paste all output that shows up in the console
while kvm is starting up?

> But from the Virtual Machine Manager I am still getting the error.
> 
> 
> (These are the main installation steps before using the VMM
> 1. Install a fresh quantal (or an upgrade)
> 2. sudo apt-get install kvm
> 3. Install Virtual Machine Manager from the Software Center

Hm, I haven't tried from the software center.  That should make
absolutely no difference, but perhaps it does.  (I use 'apt-get
install qemu-kvm libvirt-bin virt-manager)

> 7. Then follow the steps in comment #6

To be sure, you are using the default (qemu:///system) connection in
virt-manager, right?

I'll do another fresh install this afternoon and try with the software
manager.

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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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