I filed an upstream libvirt bug for the dd block size issue:

https://bugzilla.redhat.com/show_bug.cgi?id=599091

** Bug watch added: Red Hat Bugzilla #599091
   https://bugzilla.redhat.com/show_bug.cgi?id=599091

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virsh save is very slow
https://bugs.launchpad.net/bugs/524447
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Status in QEMU: Invalid
Status in “qemu-kvm” package in Ubuntu: Confirmed

Bug description:
As reported here: 
http://www.redhat.com/archives/libvir-list/2009-December/msg00203.html

"virsh save" is very slow - it writes the image at around 1MB/sec on my test 
system.

(I think I saw a bug report for this issue on Fedora's bugzilla, but I can't 
find it now...)

Confirmed under Karmic.



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