I still see that error

I installed KVM and create VM in /root. I used following command.

ubuntu-vm-builder kvm lucid --arch 'amd64' --mem '1024' --rootsize
'20480' --kernel-flavour 'generic' --hostname 'ubuntu' --mirror
'http://archive.ubuntu.com/ubuntu' --components 'main' --name 'blah'
--user 'ubuntu' --pass 'ubuntu' --removepkg=cron --dest=/root/vm1
--addpkg openssh-server

I see it created run.sh  tmp3PEhI_.qcow2 in /root/vm1/. When i do
./run.sh -curses, I still see "640 x 480 Graphic mode". I added
blacklist vga16fb in /etc/modprobe.d/blacklist.conf but it did not work.

I followed the post http://blog.zorinaq.com/?e=7, but it did not help
either. I am not sure what am i doing wrong.

The content of my run.sh is

#!/bin/sh

exec kvm -m 1024 -smp 1 -drive file=tmp3PEhI_.qcow2 "$@"

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https://bugs.launchpad.net/bugs/569394

Title:
  Can't use kvm -curses with virtual or ec2 kernels

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