I can't reproduce this with libvirt (I don't have eucalyptus available
for testing). That said, looking at the capabilities, I see in the
guest:

      <domain type='qemu'>
      </domain>
      <domain type='kvm'>
        <emulator>/usr/bin/kvm</emulator>
        <machine>pc-0.12</machine>
        <machine canonical='pc-0.12'>pc</machine>
        <machine>pc-0.11</machine>
        <machine>pc-0.10</machine>
        <machine>isapc</machine>
      </domain>


And this on the host:
      <arch>i686</arch>
      <model>n270</model>

For one thing, the guest xml looks suspect since there are 2, <domain
type=...>s, and also I didn't think the n270 i686 could do kvm. I am not
sure what generated this xml, but I would look there first. Can you
attach the domain xml for the affected guest?

-- 
Instances don't start correctly: Security Labeling error running 
aa_change_profile()
https://bugs.launchpad.net/bugs/628055
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