If you are running version 2.86.ds1-38+etchnhalf.1 of sysv-rc then that
is from a Debian 4.0 (aka "etch") repository and is not the Ubuntu 8.04
(aka "hardy") sysv-rc package.
Have you try to move from Debian to Ubuntu via apt-get?
If not then try running:
grep -i debian /etc/apt/sources.list
to check if you are set to download packages from any debian repositories.
To fix this you need to replace any packages from Debian with the
correct ones from Ubuntu. One quick way to do this could be to run an
upgrade to Ubuntu 9.04 (aka "jaunty").
Either way this is not a kvm problem, and I would recommend that this
bug be closed.
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apt-get/aptitude fails to install KVM via recommended update
https://bugs.launchpad.net/bugs/375825
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