This bug was fixed in the package qemu-kvm - 0.12.3+noroms-0ubuntu6

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qemu-kvm (0.12.3+noroms-0ubuntu6) lucid; urgency=low

  * debian/qemu-kvm.upstart: fix logic that was preventing upstart
    job from starting properly, LP: #559896
 -- Dustin Kirkland <kirkl...@ubuntu.com>   Sat, 10 Apr 2010 11:06:47 -0500

** Changed in: qemu-kvm (Ubuntu Lucid)
       Status: In Progress => Fix Released

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qemu-kvm daemon fails: exit 1
https://bugs.launchpad.net/bugs/559896
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