I am experiencing some poor performance with beta-1 in qemu-kvm (didn't have 
this issue last month.)
Would the removal of the patches (mentioned in comment #14) be the cause of 
this?
I am using an AMD host, and just moving the mouse will cause the host cpu to 
spike.  I tested an image of karmic, and everything works.

-- 
[lucid] All linux guests oops in kvm_leave_lazy_mmu during boot (9.04, 9.10, 
10.04)
https://bugs.launchpad.net/bugs/531823
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