When you did the "import virtinst" in python, it seemed to have found
this file:

/usr/lib/python2.6/dist-packages/virtinst/__init__.py

That file is not part of lucid's virtinst package...it should be
/usr/share/pyshared/virtinst/__init__.py and then symlinked to
/usr/lib/pymodules/python2.6/virtinst

Did you manually install virtinst at some point?
Do you have __init__.py in /usr/share/pyshared/virtinst and symlinked to 
/usr/lib/pymodules/python2.6/virtinst ?

How about doing a "sudo mv /usr/lib/python2.6/dist-packages/virtinst
/usr/lib/python2.6/dist-packages/virtinst.old" and trying again?

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https://bugs.launchpad.net/bugs/680627

Title:
  Error starting Virtual Machine Manager: No module named version

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