Thanks for the report.
This should be fixed in Karmic's qemu-kvm-0.11 package. There have been
a number qcow2 fixes upstream. Any one of these are expected to solve
your issue.
If you can reproduce this issue with that package, please reopen the
bug.
Thanks,
:-Dustin
** Changed in: kvm (Ubuntu)
Status: Incomplete => Fix Released
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KVM (under Jaunty) virtual machine OS win2008 cannot format qcow2 partition.
Virtual machine crashes
https://bugs.launchpad.net/bugs/388520
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