Thanks for answering so quickly.  The output should be

ide...@karmic:~/Documents$ ls /var/run/libvirt
qemu

It needs to list the sockets  as listed above.

libvir: Remote error : unable to connect to '/var/run/libvirt/libvirt-sock-ro': 
No such file or directory
libvir: Remote error : unable to connect to '/var/run/libvirt/libvirt-sock-ro': 
No such file or 

and '/var/run/libvirt/libvirt-sock-rw.

I can only say I've installed it and unistalled it a number of times, trying to 
get a workable state.
I've determined these are key components to libvirt.
In a regular kernel booted environment, they are made.  It is sane
That's what so ridiculous about this.   It's occuring in a xen environment, NOT 
a regular kernel.  How can xend or such interfere?

I can't understand why libvirt actually connects to xen at all!  There
should be set of sockets under ~/.libvirt too, but bo.

ide...@karmic:~$ ls .libvirt
qemu  storage

Not there.  Their absence is undermining every other thing that libvirt
interacts with re virtinst and virt-manager, as I described above.  It
doesn't surprise me that it doesn't reproduce.  I think something has
gone haywire on my setup, but they are all standard packages installed
in a standard way.  I've just relied on re-installing to straighten it
out, but no.  Maybe can't be reproduced which is unfortunate on my part,
since it still needs to be debugged.

Key points, occurs in a xen environment, wrecks most everything else.
Nothing radical in /etc/libvirt/libvirtd.conf

-- 
libvirt0 unable to operate due to missing essential files
https://bugs.launchpad.net/bugs/527875
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