Solved for me - my problem was that I did not reboot the physical machine after installing kvm+libvirt packages and thus the virtual machine was running QEMU software virtualization and not HW-based KVM one.
Apparently QEMU has some issues with the SeaBIOS, which prevents int13 to operate properly. -- Unable to start ubuntu hardy server guest os with kvm https://bugs.launchpad.net/bugs/622077 You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs