I have the same problem but booting all my Ubuntu VMs which are running
Hardy.  I was using Jaunty with the server kernel (to get access to full
4GB memory) originally and upgraded to 2.6.30 generic kernel to fix my
Intel Graphics issues.  After this all my KVMs will not boot fully.  It
does the POST then gets stuck at "Starting up ..."

Here is my output

t...@rad4-x300:~$ ps -wwfp $(pgrep -d, -x kvm)
UID        PID  PPID  C STIME TTY          TIME CMD
root      4051     1 82 11:12 ?        00:00:23 /usr/bin/kvm -S -M pc -m 512 
-smp 1 -name x300-alfresco -uuid a43c32e7-f0d5-bbb4-3784-d55fe13027da -monitor 
pty -pidfile /var/run/libvirt/qemu//x300-alfresco.pid -boot c -drive 
file=/home/tomg/VMs/x300-alfresco,if=ide,index=0,boot=on -drive 
file=,if=ide,media=cdrom,index=2 -net 
nic,macaddr=54:52:00:7c:3b:6b,vlan=0,model=virtio -net 
tap,fd=16,script=,vlan=0,ifname=vnet0 -serial pty -parallel none -usb -vnc 
127.0.0.1:0 -k en-us -soundhw es1370

-- 
Certain VMs do not run under KVM using 2.6.30-rc5 kernel
https://bugs.launchpad.net/bugs/379991
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