Hello-

This bug has been fixed in upstream KVM.  See git commit
77c125369426a519fb9ea92dc159fa5ce392f354.

I've confirmed on a Jaunty host that I can boot a VM with:
 $ kvm -drive file=intrepid-server.img,if=virtio,boot=on 

And reboot it without a problem.

Thanks for the report!
:-Dustin

** Changed in: kvm (Ubuntu)
       Status: New => Fix Released

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Reboot fails with virtio disks
https://bugs.launchpad.net/bugs/292587
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