Do you have the dnsmasq service running ? In bug 350598, that was my problem.
Anything related to dnsmasq or virbr0 in syslog/messages.log ?

** This bug is no longer a duplicate of bug 350598
   Fails to start VM after Jaunty upgrade: Failed to add tap interface 'vnet%d' 
to bridge 'virbr%d'

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kvm images created under 8.10 fail to load
https://bugs.launchpad.net/bugs/350751
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