Could you try setting

devices/system/cpu/cpu0/cpufreq/scaling_governor = performance
in /etc/sysfs.conf?

http://etbe.coker.com.au/2010/03/17/starting-with-kvm/ suggests that kvm
may not like frequency scaling on on that cpu.

** Changed in: linux (Ubuntu)
       Status: Invalid => Incomplete

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https://bugs.launchpad.net/bugs/1021271

Title:
  KVM "enabling virtualization on CPU0 failed"

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