Tested this in Lucid, looks to be fixed.
** Changed in: libvirt (Ubuntu)
Status: Confirmed = Fix Released
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internal error creation of non-raw images is not supported without qemu-img
https://bugs.launchpad.net/bugs/368084
You received this bug notification because you are a member of
Please reopen if you can recreate this.
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internal error creation of non-raw images is not supported without qemu-img
https://bugs.launchpad.net/bugs/368084
You received this bug notification because you are a member of Ubuntu
Server Team, which is subscribed to libvirt in ubuntu.
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** Changed in: libvirt (Ubuntu)
Importance: Undecided = Medium
** Changed in: libvirt (Ubuntu)
Status: New = Confirmed
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internal error creation of non-raw images is not supported without qemu-img
https://bugs.launchpad.net/bugs/368084
You received this bug notification because you
virt-manager is not at fault
** Package changed: virt-manager (Ubuntu) = libvirt (Ubuntu)
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internal error creation of non-raw images is not supported without qemu-img
https://bugs.launchpad.net/bugs/368084
You received this bug notification because you are a member of Ubuntu
Server Team,