Have same issue: cannot create new qemu VM, it fails with same error message:
qemu: could not open disk image /var/lib/libvirt/images/lucid.img: No such file 
or directory

I guess that it's because everything inside  /var/lib/libvirt/ is owned my root.
Is this expected?
Thanks.

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virt-manager cannot create image file
https://bugs.launchpad.net/bugs/405388
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