Hi,

We recently also experiencing this issue on Ubuntu 12.04.  I've tried the 
suggestions stated in comment:1. This didn't gave any relief. To get back to 
the "console speed" I was used to in Lucid, I did the following:
- downloaded the following files: libgtk-vnc-1.0-0_0.3.10-2ubuntu2.2_i386.deb & 
python-gtk-vnc_0.3.10-2ubuntu2.2_i386.deb
- from  python-gtk-vnc: boldy copied /usr/lib/python2.6/dist-packages/gtkvnc.so 
over /usr/lib/python2.7/dist-packages/gtkvnc.so
- downgraded libgtk-vnc: dpkg -i --force-all 
libgtk-vnc-1.0-0_0.3.10-2ubuntu2.2_i386.deb

After that I gained back the usability for virt-manager and I'm able to
watch htop (for examle) as I expected. Maybe this helps.

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https://bugs.launchpad.net/bugs/582145

Title:
  Virtual guests' console is unusably slow due to framebuffer usage

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