This bug was fixed in the package libvirt - 0.4.0-2ubuntu8.2
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libvirt (0.4.0-2ubuntu8.2) hardy-proposed; urgency=low
* masquerade-only-outbound-traffic.patch:
- Ensure masquerading rule only catches traffic leaving the virtual
network, and not traffic inside it. (Backported from commit
d175caad25a4e80800d5e7e7d8c9d920a88b78e1 of
git://git.et.redhat.com/libvirt.git.) (LP: #227837).
-- bfie...@fieldses.org (J. Bruce Fields) Sun, 05 Oct 2008 15:13:50 -0400
** Changed in: libvirt (Ubuntu Hardy)
Status: Fix Committed => Fix Released
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[Hardy] overzealous masquerading affects vm to vm traffic
https://bugs.launchpad.net/bugs/227837
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