On Wed, 2012-01-18 at 13:07 +0100, Guido Günther wrote:
> You can also check with strace what libvirtd does

I enabled debug logging in libvirtd.conf and I think I finally found the
problem(s). 
First I had the wrong permissions set on /dev/kvm with the group being
set to "users" which should have been "kvm". This was pretty likely my
own fault. Debug logging showed the "permission denied" message which
pointed me in this direction.
Once this was resolved I ran into [0] which I guess was caused by having
ulatencyd installed on the system. Once I remove it, unmounted all
cgroups mounts in /sys/fs/cgroup and restarted libvirt-bin service, I
was able to start the VM without problems.

Sorry for not spotting this earlier :-( I would consider this bug
closed. Not sure what to do about the possible conflict with ulatencyd.

[0] https://bugzilla.redhat.com/show_bug.cgi?id=666130

Cheers,
Michael

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