It happens with me also. I am not able to suspend / hibernate.
System Details : Dell Inspiron E 1505 / 6400
Ubuntu Feisty 7.04
kvm version : 25

I found following work around : 
In file /etc/defaults/acpi-support replace following line,

MODULES=""
with
MODULES="kvm-intel kvm"

-- 
Cannot resume from suspend with kvm modules loaded
https://bugs.launchpad.net/bugs/113038
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