You have been subscribed to a public bug:

Quantal 64bit alternate installation on KVM with Cirrus(default)
graphics

After boot the VM ends up on the VT login because X refuses to start
while the cirrus kernel module is loaded. Adding cirrus to the module
blacklist will allow lightdm to start again. Just to encounter bug
#1039647.

** Affects: xorg (Ubuntu)
     Importance: High
     Assignee: Canonical X.org (canonical-x)
         Status: Triaged

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kvm/cirrus: X driver will not load when kernel module is loaded
https://bugs.launchpad.net/bugs/1039648
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