Ran in to the same issue with Ubuntu-12.04. I am trying to set up nova compute 
in a VM. I wanted to use libvit_type=qemu but i kept getting the error "hvm not 
supported".
Just when I was about to give up and try to reboot my host with nested 
virtualization capability, I realized that I was adding
libvirt_type=qemu in /etc/nova/nova.conf while I should really be adding it in 
/etc/nov/nova-compute.conf

Doing that resolved my issue! I can now launch a nested VM using qemu.
Hope this helps someone :-)

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https://bugs.launchpad.net/bugs/1031063

Title:
  internal error no supported architecture for os type 'hvm'

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