Uninstalling vbox solved the problem...

Pretty weird, I don't run any vbox vm anymore...

I couldn't simply uninstall vbox 4.1 (yeah, I was out of date since 4.2
is the new stable for months), there were two processes from vbox still
running (probably started at boot). I had to kill them first and then
'sudo service libvirt-bin restart' to successfully create the vm.

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https://bugs.launchpad.net/bugs/1157272

Title:
  fail to create vm since upgrade to raring

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