Just had the same problem and the hint with the display device pointed me in 
the right direction: I enabled VNC for my desktop some days ago (port 5900) and 
did not use the VM until today. Since the VM was configured to use the same 
port for VNC the startup failed.
So, thanks Darik!

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second virtual machine raises error
https://bugs.launchpad.net/bugs/219714
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