How did you install libvirt?  what does 'dpkg -l | grep libvirt' and
'dpkg -S `which libvirtd`' show?

I've tried to reproduce this on a fresh maverick install, but couldn't.
It appears something has gone mad with your packages.

** Changed in: libvirt (Ubuntu)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/796216

Title:
  failed to create\start vm

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