Today I noticed that although I removed the membaloon it didn't stick (possibly due to panic not syncing the file). I removed once again membaloon and started the guest with little bit better results. The system does not freeze immediately, but it leaves a lot of "oopses" in the syslog/dmesg. I am attaching these "oopses".
The highlight of the "oopses" is "BUG: unable to handle kernel paging request at". I am going to try kvm in NAT mode (btw how do I do that?) and see if this is happening still. ** Attachment added: "messages" https://bugs.launchpad.net/ubuntu/+source/qemu-kvm/+bug/776936/+attachment/2124149/+files/messages -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/776936 Title: Running KVM guest causes kernel panic on host -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs