Hi, thanks for the bug report!
Three questions for you...
1) Are you creating this virtual machine using the kvm command line, or
through the graphical virt-manager utility?
2) How exactly are you telling the installer to use virtio?
3) Can you reproduce this problem in the latest Hardy and Intrepid
images?
Thanks,
:-Dustin
** Changed in: kvm (Ubuntu)
Status: New => Incomplete
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Cannot install Ubuntu when using virtio network device
https://bugs.launchpad.net/bugs/205013
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