This was fixed in 0.5.0 (see Fedora bug). Jaunty has libvirt 0.6.1-0ubuntu4 and virt-manager 0.6.1-1ubuntu4.
** Changed in: virt-manager (Ubuntu)
Status: Confirmed => Fix Released
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changing cpu/memory allocation in virt-manager does not work
https://bugs.launchpad.net/bugs/201877
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