I can confirm that this is fix-released in Lucid.
In Jaunty, we had:
if ! getent group libvirt >/dev/null; then
addgroup --system libvirtd
fi
Now it's fixed with:
if ! getent group libvirtd >/dev/null; then
addgroup --system libvirtd
fi
** Changed in: libvirt (Ubuntu)
Status: Triaged => Fix Released
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Reinstall error on libvirt -- group already exists
https://bugs.launchpad.net/bugs/355907
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