I can confirm this on ubuntu 9.04

Linux desktop 2.6.28-15-generic #49-Ubuntu SMP Tue Aug 18 18:40:08 UTC 2009 
i686 GNU/Linux
ii  kvm                                        1:84+dfsg-0ubuntu12.3            
  Full virtualization on i386 and amd64 hardwa
ii  kvm-pxe                                    5.4.3+dfsg-0.2ubuntu1            
  PXE ROM's for KVM
ii  libvirt-bin                                0.6.1-0ubuntu5.1                 
  the programs for the libvirt library
ii  libvirt0                                   0.6.1-0ubuntu5.1                 
  library for interfacing with different virtu
ii  python-libvirt                             0.6.1-0ubuntu5.1                 
  libvirt Python bindings
ii  python-virtinst                            0.400.1-2ubuntu2                 
  Programs to create and clone virtual machine
ii  python-virtkey                             0.50ubuntu2                      
  Library to emulate keyboard keypresses.
ii  virt-manager                               0.6.1-1ubuntu4                   
  desktop application for managing virtual mac

logging off and on solves the problem

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Unable to run Virtual Machine
https://bugs.launchpad.net/bugs/217311
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