I have the same problem. I think the upstart scripts is a red herring. My guess 
is that there is some race condition in the connection to nss.
I have all my users in ldap and sometimes libvirtd hangs and a couple of 
restarts of it are needed to be able to connect to it.

Stuff I have tried:
upgrade libvirtd to 1.2.12-1
running with and without nscd

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https://bugs.launchpad.net/bugs/1382046

Title:
  libvirt-bin unaware of uids on LDAP

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