Thanks for taking the time to submit this bug.

I can't reproduce this on oneiric, but I suspect the problem is that
/dev/kvm is not owned by group kvm.  Could you confirm this by showing
the result of 'ls -l /dev/kvm' ?

If that is the case, then a reboot (or manual chown) should fix this,
but this was supposed to have been fixed and is a regression in qemu-
kvm.

** Changed in: libvirt (Ubuntu)
   Importance: Undecided => Low

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

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https://bugs.launchpad.net/bugs/891204

Title:
  Essential configuration in /etc/libvirt/qemu.conf commented out

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