Wow, this bug report is so old. 
Since then I've upgraded the KVM userspace and ubuntu uses the latest kernel
so I can't test with that configuration any more, and I don't think it matters 
any more.

But this is not the first or last breakege of Ubuntu running in KVM with
virtio-net and virtio-blk

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virtio_net in karmic as guest doesn't work
https://bugs.launchpad.net/bugs/486883
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