I have no idea if this information will help or not, but I am getting
this exact same error message, but from a different scenario. I had
Windows Vista installed and running fine in libvirt / KVM on Ubuntu
10.04, libvirt0 0.7.5-5ubuntu7, kvm 1:84+dfsg-0ubuntu16+0.12.3+0ubuntu2,
qemu-kvm 0.12.3-0ubuntu2 on an Intel Core 2 quad core system.

All was fine -- even had a USB multi-function printer working
successfully. Then I made the mistake of installing the Microsoft
Security Essentials pack so that I'd have virus protection and such. I
was a bit worried that it might fail the "genuine" test since it would
not see the Dell hardware, but instead the virtual hardware, but to my
surprise it passed that step fine and went on to do an install. I later
rebooted. And the machine will no longer boot. Clicking "run" in Virtual
Machine Manager does nothing, and shortly thereafter Ubuntu Gnome dims
the VMM application because it has stopped responding. Eventually, I get
a pop-up with the error message described in this bug report. Looks like
I'm going to have to completely re-install Vista (and NOT Security
Essentials).

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Unable to create a new VM when selecting PXE boot and kvm-pxe is not installed
https://bugs.launchpad.net/bugs/478527
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