Well, today is Oct 8th 2014 and I just lost three VMs because of this.
That the tyrget folder (/var/lib/libvirt/images) wasn't backed-up is my
fault but the documentation SHOULD BE CLEARER about what happens when
you pass the -o option to vmbuilder.
And yes, overwriting the whole directory is no
See attached screen-shot of the dialog in question. As already noted
above, most annoying, checking "Remember this option?" check-box has no
effect whatsoever.
** Attachment added: "lp-1314985.png"
https://bugs.launchpad.net/ubuntu/+source/icedtea-web/+bug/1314985/+attachment/4228265/+files/lp