I just upgraded a server from 11.10 to 12.04 and I got a gnome-keyring
error [1] when trying to start a guest.  There is some other bug about
it and strangely a workaround was to install the 'gnome-keyring'
package.  I did so in haste and the majority of the error remains, even
after upgrading qemu-kvm to proposed version:
$ sudo virsh start kvm-blah

error: Failed to start domain kvm-blah
error: internal error Process exited while reading console log output: char 
device redirected to /dev/pts/1
Could not access KVM kernel module: No such file or directory
failed to initialize KVM: No such file or directory
No accelerator found!

$ apt-cache policy qemu-kvm

qemu-kvm:
  Installed: 1.0+noroms-0ubuntu14.4
  Candidate: 1.0+noroms-0ubuntu14.4
  Version table:
 *** 1.0+noroms-0ubuntu14.4 0
        500 http://archive.ubuntu.com/ubuntu/ precise-proposed/main amd64 
Packages
        100 /var/lib/dpkg/status
     1.0+noroms-0ubuntu14.3 0
        500 http://archive.ubuntu.com/ubuntu/ precise-updates/main amd64 
Packages
     1.0+noroms-0ubuntu14.2 0
        500 http://security.ubuntu.com/ubuntu/ precise-security/main amd64 
Packages
     1.0+noroms-0ubuntu13 0
        500 http://archive.ubuntu.com/ubuntu/ precise/main amd64 Packages

==============================

[1]

p11-kit: couldn't load module: 
/usr/lib/x86_64-linux-gnu/pkcs11/gnome-keyring-pkcs11.so: 
/usr/lib/x86_64-linux-gnu/pkcs11/gnome-keyring-pkcs11.so: cannot open shared 
object file: No such file or directory
error: Failed to start domain kvm-misc3
error: internal error Process exited while reading console log output: char 
device redirected to /dev/pts/1
Could not access KVM kernel module: No such file or directory
failed to initialize KVM: No such file or directory
No accelerator found!

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https://bugs.launchpad.net/bugs/1057024

Title:
  kvm kernel module always loaded, without setting /dev/kvm permissions

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