I ran into the same problem after upgrading from Lucid to Maverick. The
problem is that vmbuilder isn't changing the disk file format from `raw'
to `cow2' when moving the image from /tmp to the install location. To
get the VM to boot just fire up virsh, edit [vm], and change "<driver
name='qemu' type='raw/>" to "<driver name='qemu' type='qcow2'/>".

If you're not familiar with vi, then run virsh like `EDITOR=nano virsh
....'

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new virtual machines do not boot
https://bugs.launchpad.net/bugs/634488
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