Thanks for confirming the bug !

As for me, the workaround was to run the VM on another machine with
Intel processor, so that I can start upgrading the main server to
Precise (which, as far as I can tell, does not have this problem).

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https://bugs.launchpad.net/bugs/1047531

Title:
  Ubuntu 12.04 (Precise) guests can't boot on Ubuntu 10.04 (Lucid) QEMU-
  KVM host

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