Comment 27 for bug 1057024

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Para Siva (psivaa) wrote : Re: internal error Process exited while reading console log output: char device redirected to /dev/pts/1 error when creating a vm

So after a fresh install, initially the issue was still present but then when i followed https://wiki.ubuntu.com/SergeHallyn_libvirtnest and then after a reboot i am able to create vms using Virtual Machine Manager.