Comment 8 for bug 1040033

uvt from vmtools does the following (in essence):
1. creates a custom iso with preseed files, which among other things, drops a script into the VM that is run
2. uses that iso with virt-install. Eg:
/usr/bin/virt-install --quiet --connect=qemu:///system --name=test1-oneiric-amd64 --arch=x86_64 --ram=768 --disk=path=/home/jamie/vms/machines/test1-oneiric-amd64.qcow2,size=8,format=qcow2,sparse=true,bus=virtio --virt-type=kvm --accelerate --hvm --cdrom=/home/jamie/vms/isos/cache/vmtools-oneiric-desktop-amd64.iso --os-type=linux --os-variant=generic26 --graphics=vnc --network=network=default,model=virtio --video=cirrus --noreboot
3. On VM reboot, the customization script referenced in step 1 is run automatically and upon successful completion, removed
4. The VM is polled for lsb_release over ssh. Upon successful response, the machine is shutdown
5. A pristine snapshot is created using libvirt's 'shapshot' functionality

The installation failure occurs in step '2' during virt-install. Ubiquity shows an error that halts installation, which allows me to submit a bug report via apport (which I did for this report).

I gracefully shutdown the machine after submitting the report and saved the qcow2. Later I used qemu-img to create a raw image, then used kpartx/mount to examine the contents which revealed what I said in comments #2 and #3.

Since yesterday, I created 16 more oneiric installs successfully, for a total of 25 successful installs and no failures with qemu-kvm from 12.04.