I don't think I've managed to reproduce this.  I do get errors, but they
seem to be VMS failing to start which is more likely due to other
reasons.  I tried to reproduce with the instructions in comment #7, and
expected to get libvirt hung to the point that the script in comment #6
would hang.  That never happened.  If my understanding about how it
should fail was wrong then please let me know.

(Was trying on a ec2 c3.large precise instance)

I notice that
https://bugzilla.redhat.com/show_bug.cgi?format=multiple&id=929412 (from
comment #11) is not yet resolved.

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https://bugs.launchpad.net/bugs/1228977

Title:
  n-cpu seems to crash when running with libvirt 1.0.6 from ubuntu cloud
  archive

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