That's a bug in jaunty's libvirt.

This is the upstream patch that fixes it:

http://libvirt.org/git/?p=libvirt.git;a=commit;h=9fa79000ecc883c699a6cb1ce7f00c34881bc8fe


** Package changed: virt-manager (Ubuntu) => libvirt (Ubuntu)

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Unable to create virtual machine: unknown parameter 'fmt'
https://bugs.launchpad.net/bugs/518854
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