Thanks, Soren. It sounds like just jumping to the just-released 0.8.8
might be the least painful solution.
** Changed in: libvirt (Ubuntu)
Importance: Undecided => Medium
** Changed in: libvirt (Ubuntu)
Status: New => Won't Fix
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https://bugs.launchpad.net/bugs/720426
Title:
libvirt fails to run vm's with virtio disks and a kernel
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