reference #8 
No, it is a ubuntu Raring Vs KVM issue, not the other way round :) KVM is part 
of the kernel, it is also part of cloud, guestfish which is a tool for KVM also 
will not run under quantal (there is new stuff being applied for raring). 
Raring KVM cannot run  'raring' without the video issue. KVM.... something is 
very broken in raring, not the other way round. 
I'm NOT 100% sure if 
https://bugs.launchpad.net/ubuntu/+source/ubiquity/+bug/1088692 is a true 
duplicate of this bug, as there is no section that has stated the reason for it 
to fail.

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https://bugs.launchpad.net/bugs/1078226

Title:
  raring daily: background & lightdm look as if they are in 8bit
  greyscale mode

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