Solved for me - my problem was that I did not reboot the physical machine after installing kvm+libvirt packages and thus the virtual machine was running QEMU software virtualization and not HW-based KVM one.
Apparently QEMU has some issues with the SeaBIOS, which prevents int13 to operate properly. -- Unable to start ubuntu hardy server guest os with kvm https://bugs.launchpad.net/bugs/622077 You received this bug notification because you are a member of Ubuntu Server Team, which is subscribed to kvm in ubuntu. -- Ubuntu-server-bugs mailing list Ubuntu-server-bugs@lists.ubuntu.com Modify settings or unsubscribe at: https://lists.ubuntu.com/mailman/listinfo/ubuntu-server-bugs