I tested it in Lucid 64bit running under KVM.
There is no output to the console, so it's working!

I can even start that virtual machine (Lucid 64bit) in host that is also
a virtual machine (Lucid 64bit)!

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qemu-img complains about "Unknown option 'size'" when using host_device format
https://bugs.launchpad.net/bugs/460542
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