Please test the packages from the attachment in comment #6.  (You can
also get them from ppa:serge-hallyn/virt)  If these do indeed fix the
issue for you, then I'll issue a SRU to get this fix into maverick.

I've marked the main bug 'fix released' since natty has the fix from
upstream (and since this is a prerequisite for SRU).

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https://bugs.launchpad.net/bugs/668043

Title:
  libvirt default network doesn't start, iptables errors, bad rules

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