CPU frequency scaling is on by default in lucid.

fix:
echo performance > /sys/devices/system/cpu/cpu0/cpufreq/scaling_governor

Once cpu frequency scaling was turned off, I no longer had this issue.
This is a cpu timing issue.

Shouldnt this be turned off by default on ubuntu server, or at least a
warning given for kvm libvirt users?

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Virtual machine soft lockup - CPU gets stuck for XX seconds
https://bugs.launchpad.net/bugs/333201
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