Unlike Ezra Reeves, I only have the mouse issue. When I move my mouse, the 
"xorg" process of the VM goes to 100% (I can get more CPU usage if I enable 
many processors), and so does the KVM process. It happens:
- with KVM native display or VNC
- using KVM directly or through libvirt
The rest seems to be fine. VirtualBox doesn't have such an issue.

My configuration:
- 64bits
- physical system: Kubuntu 10.04
- virtualized system: Ubuntu or Kubuntu 10.04, 32bits or 64bits

No problem when virtualizing 9.10 on the same machine.

-- 
[lucid kvm-qemu]High cpu usage when moving mouse
https://bugs.launchpad.net/bugs/553081
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