Hi, I'd experienced this bug too.
Few days ago libvirt 1.1.1 was released [1]. I've tried to rebuild package with new source and this bug and few other that I had on 1.1.0 release are gone. I'm able to create VMs again.
Please consider updating your package to new version. 1: https://www.redhat.com/archives/libvir-list/2013-July/msg01868.html -- To UNSUBSCRIBE, email to debian-bugs-rc-requ...@lists.debian.org with a subject of "unsubscribe". Trouble? Contact listmas...@lists.debian.org