After mounting cgroup on /dev/cgroup the warning message disappeared.

/etc/fstab:
  cgroup  /dev/cgroup  cgroup  defaults  0  0

installed:
ii  libvirt-bin         0.7.5-5ubuntu27     the programs for the libvirt library
ii  lxc                 0.6.5-1             Linux containers userspace tools

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Unable to create cgroup for driver: No such device or address
https://bugs.launchpad.net/bugs/544146
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