This issue was caused by not having a virtio entry and then re-defining
the VM.

vi /etc/libvirt/qemu/vm.xml

<interface type=’network’>
<mac address=’00:16:36:0b:4c:9c’/>
<source network=’default’/>
<model type=’virtio’/>
</interface>

virsh shutdown vm

virsh define /etc/libvirt/qemu/vm.xml

virsh start vm

-- 
Ubuntu 9.04 VM has poor network performance on 8.10 host
https://bugs.launchpad.net/bugs/390699
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