It looks like this bug is back in some form for the 12.10 beta:

virt-install -n vi-test -r 512 --disk path=/vm/vi-test.img,size=4 -c
/vm/iso/ubuntu-12.10-beta1-server-amd64.iso --network network=default
--connect=xen:/// --vnc --noautoconsole -v

Starting install...
Creating storage file vi-test.img                                               
                | 4.0 GB     00:00     
ERROR    POST operation failed: xend_post: error from xen daemon: (xend.err 
"Error creating domain: device model '/usr/lib/xen-default/bin/qemu-dm' not 
found")
Domain installation does not appear to have been successful.
If it was, you can restart your domain by running:
  virsh --connect xen:/// start vi-test
otherwise, please restart your installation.

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https://bugs.launchpad.net/bugs/914788

Title:
  libvirt expexts qemu-dm in wrong path for xen

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