I can confirm this bug. Running the desktop-cd with qemu (or without loading kvm-intel module) seems to work but is damn slow. X seems to run inside kvm without a problem, only the early "bling" fails.
-- fancy isolinux screen on install isos hang xen/kvm HVM guests https://launchpad.net/bugs/83642 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs
