i had the same problem, but the problem didn't show up until i rebooted after
installing KVM.
I am using an intel q6600 6 gb ram ubunutu 8.04 64 bit, VMware server 1,07. as
soon as i start a VM in VMware, mouse and keyboard freezes, 1 or 2 CPU's go to
100% and stay there, network connectivity is immediately lost but system
monitor still updates for several minutes before that freezes as well. Maybe
this is more of a bug for VMWare, but i thought i would post here because it
happens to break when i installed kvm, and is working after kvm is removed.
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Bad interactions with kvm and vmware (CPU left in VMX root mode?)
https://bugs.launchpad.net/bugs/220419
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