Thomas, thank you for taking the time to file this bug report and help
us make Ubuntu better!

The upstart job is, indeed, ignoring any settings that used to be set in
/etc/default/libvirt-bin.

Seeing as there is no warning about this in the release notes or
changelog, I think this is a regression, as it breaks on upgrade from
lucid to maverick.

As a workaround, you can take all the settings from that file and
manually add them to /etc/init/libvirt-bin.conf as

env KRB5_KTNAME=/etc/libvirt/krb5.keytab

There is no need for a special script to do that.

The fix should be to source /etc/default/libvirt-bin and respect the
flags as they were before, at least until the release following the next
LTS.

Marking Triaged ( as Ubuntu is upstream for the upstart job ) and
setting Importance to Medium, as this is a regression on upgrade, but
only affects users with non-default configurations.

** Tags added: regression-release

** Changed in: libvirt (Ubuntu)
       Status: New => Triaged

** Changed in: libvirt (Ubuntu)
   Importance: Undecided => Medium

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https://bugs.launchpad.net/bugs/708172

Title:
  service libvirt-bin start does not set KRB5_KTNAME as required

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