Hello Scott,

After upgrading the host to the latest packages I was now able to install 
Lucid-Beta2 and run it afterwards.
I must admit that I'm now unsure if I remembered to upgrade after the initial 
Installation since I re installed a few times due to grub issues when 
installing on a USB drive yet fiddling with the grub installation of the 
internal drive (but I'll open separate report for that.

For the record though:
I used whatever the default for virt-manager is:
Applications->System Tools->Virtual Machine Manager
(here I had to create a new domain "localhost (QEMU)" due to missing privileges 
in the "localhost (QEMU Usermode)" domain)
mouse right click->New
Name: Lucid
* Local install media (ISO image or CDROM)
Use ISO Image: <Browse to nfs mounted ubuntu-10.04-beta2-desktop.i386.iso image>
OS type: Linux
Version: Ubuntu 10.04 (Lucid Lynx)
RAM 512
CPU 1
* Enable storage for this machine
 * create a disk image on the computer's hard drive
20.0 GB
 * Allocate entire disk now
Finish
- Open vm-console to install Lucid in VM
  (the Installation was done in German in Austrian locale)
using full vda block device.
... (continue default installation)

I've attached the virsh dumpxml Lucid > Lucid.xml output anyway.

Thanks for looking into the issue!

** Attachment added: "virsh dumpxml"
   http://launchpadlibrarian.net/44419052/Lucid.xml

-- 
KVM machines became corrupted after reboot (i386 only)
https://bugs.launchpad.net/bugs/469419
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