After looking at comments on Dustin blog and taking some time to test:
- backported libvirt from jaunty to hardy
- installed kvm-source and let dkms build the module

After the boot, when I connect with VNC on the local machine, if I run 
dhclient, machine get an IP address, and I can reboot, it will get its address 
almost forever again.
On a machine, like another comment on your blog (the virtual machine is a 
jaunty, but I guess we do not care), I'm stuck before grub
On a third machine, booting kernel 2.6.24-23 failed. I have an incorrect 
binary. If I boot 2.6.24-16, all run fine, and I even can reboot on 2.6.24-23! 
I need to do the same dhclient magic for getting network up.
I will continue my tests. If you want me to test any option, feel free to ask.

-- 
[ppa] kvm 1:84+dfsg-0ubuntu8~ppa5 broke my network
https://bugs.launchpad.net/bugs/346698
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