No. You can't use KVM in a guest since it requires hardware virtualization. 
Instead you need to use qemu in emulation mode. Refer to the devstack code for 
how to set this up, since devatack will work in Amazon EC2.

On Thu, Jun 13, 2013 at 4:54 PM, Daniel Ellison <dan...@syrinx.net> wrote:

> On Jun 13, 2013, at 4:36 PM, Daniel Ellison <dan...@syrinx.net> wrote:
>> libvirtd is already running on the guest.
> One more data point: the guest does have the vmx capability enabled:
> <cpu match='exact'>
>   <model>Penryn</model>
>   <vendor>Intel</vendor>
>   <feature policy='require' name='hypervisor'/>
>   <feature policy='require' name='vmx'/>
>   <feature policy='require' name='ss'/>
>   <feature policy='require' name='vme'/>
>   <feature policy='disable' name='sse4.1'/>
> </cpu>
> Dan
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