I have the same problem: after today's upgrade to kernel 2.6.28-13, my
virtual machines with default Jaunty installation stopped working, they
hang after displaying grub devices and 'Starting up', spinning the CPU.

This is my KVM start command:

gksudo -- kvm -hda mname/kvm.img -m 512  -net nic -net
tap,script=/etc/kvm/kvm-ifup -vnc 127.0.0.1:0 -sdl -daemonize

If I add -no-kvm option, the VM boots, but ept-get update segfaults.

Another VM using CentOS 5.3 boots without (apparent) problems. If I
reboot the host to 2.6.28-11, the Jaunty VMs work again.

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