libvirt 0.4.0-2ubuntu8 in the unapproved queue fixes this.
** Changed in: libvirt (Ubuntu)
Importance: Undecided => High
Target: None => ubuntu-8.04
** Changed in: libvirt (Ubuntu)
Status: Incomplete => Fix Committed
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shutdown command on the host doesn't do a gracefull shutdown of the guest
https://bugs.launchpad.net/bugs/214003
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