I can confirm this problem.  Just tried to install 8.04.2 into a newly
create VM under Jaunty and the installation process repeatedly hangs
after network detection.  This persisted until the default NIC
definition was removed and replaced by an e1000 NIC.

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virtio on hardy guest and jaunty host (kvm 84) is broken
https://bugs.launchpad.net/bugs/331128
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