Neil,

This is still not enough information. You didn't give the XML for the
guest (as requested). Installing libvirt-bin in a guest works fine here
using kvm on the host, noting that you must adjust the default network
of the guest (if using NAT) to be something other than 192.168.122.0/24.
It looks like you are installing this in ec2. Please give more
information as to the environment of the machine you are installing
libvirt-bin on. Is it up to date with the latest lucid?

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libvirtd will not run on virtual machine
https://bugs.launchpad.net/bugs/556326
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