Thanks for the report.
Can you reproduce this in Lucid?
I've recently ported libvirt to use upstart for init. I'd be curious if
you can reproduce this problem there.
Thanks.
** Changed in: libvirt (Ubuntu)
Status: New => Incomplete
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/etc/init.d/libvirt-bin does not check that libvirtd has terminated on stop
https://bugs.launchpad.net/bugs/522688
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