This works fine for me in karmic when replacing the vnc xml with the following:
<graphics type='sdl' display=':0.0'/>
Then defining the machine accordingly. Can you please attach the xml of the
domain by performing:
$ virsh dumpxml <domain>
** Changed in: libvirt (Ubuntu)
Status: New => Incomplete
** Changed in: libvirt (Ubuntu)
Assignee: (unassigned) => Jamie Strandboge (jdstrand)
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starting a VM with an SDL display hangs virtmanager and virsh
https://bugs.launchpad.net/bugs/457092
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