I found a work around thanks to some googling and seeing the 
bug in ubuntu

The KVM needs the -nx flag to allow it to work.  You can achieve this 
with the following steps

create the file /etc/libvirt/qemu/kvm-32 with the following contents

#!/bin/bash
exec kvm -cpu qemu32,-nx `echo $*`

and make it executable.

In the same directory you should find the xml file for your virtual 
machine.  In my case it was called windows.xml

Inside that file there is a line

<emulator>/usr/bin/kvm</emulator>

change it to

<emulator>/etc/libvirt/qemu/kvm-32</emulator>

You will need to restart libvirt-bin

/etc/init.d/libvirt-bin restart

and then the virtual machine can be started and windows runs fine.  

-- 
Alan Chandler
http://www.chandlerfamily.org.uk




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