I just reproduced this bug on a fresh hardy install.
Unable to complete install '<class 'libvirt.libvirtError'> internal
error unable to start guest: qemu: unknown parameter 'fmt' in
'file=/var/lib/libvirt/images/pmagic-4.10.iso,if=ide,media=cdrom,index=2,fmt=raw'
** Changed in: libvirt (Ubuntu)
Status: Fix Released => Confirmed
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Unable to create virtual machine: unknown parameter 'fmt'
https://bugs.launchpad.net/bugs/518854
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