I got this same error.  I did have a previously working vm. I did set
hostname.

I am working on Ubuntu 10.04 64-bit.

I moved ubuntu-kvm.

mv ubuntu-kvm old-ubuntu-kvm

I also moved  othost.xml

sudo mv /etc/libvirt/qemu/othost.xml oldothost.xml

 After killing libvirtd it worked.


$ sudo vmbuilder kvm ubuntu -c otserver.cfg

-- 
AttributeError: 'Libvirt' object has no attribute 'vm'
https://bugs.launchpad.net/bugs/562189
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