This bug was fixed in the package libcgroup - 0.37.1-1ubuntu7

---------------
libcgroup (0.37.1-1ubuntu7) oneiric; urgency=low

  * Replace broken /etc/init/libvirt-cgred-wait.conf with (hopefully much
    improved) /etc/init/libvirt-cgconfig-wait.conf.  (LP: #828061)
  * Add a check to make sure /etc/init/cgconfig.conf only runs once, so
    that it does not (a) overmount /sys/fs/cgroup and (b) re-classify all
    tasks a second time, which is not only a waste of time, but is in fact
    harmful, for instance breaking libvirtd.  (LP: #828061)
  * Don't run libvirt-cgconfig-wait.conf on install or upgrade.  It's
    only mean to start when libvirt is starting, to make sure cgroups are
    set up before libvirt continues.
  * Rename /usr/sbin/create_default_cgroups.sh to
    /usr/sbin/create_default_cgroups (thanks to smoser)
  * cgroup-bin.libvirt-cgconfig-wait.upstart: just check grep return
    value rather than the length of its returned string.
 -- Serge Hallyn <serge.hal...@ubuntu.com>   Thu, 01 Sep 2011 20:08:49 -0500

** Changed in: libcgroup (Ubuntu)
       Status: In Progress => Fix Released

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https://bugs.launchpad.net/bugs/828061

Title:
  cgroup-bin prevents libvirt from starting

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