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I've been pulling my hair out trying to get Ubuntu 12.04LTS server (64bit) working under a standard KVM/libvirt setup on Ubuntu 14.04.

I can create a new virtual machine using virt-manager and run through the installation process from an ISO image. However, when I reboot on completion the new virtual machine hangs after fsck. On trying repeatedly and fiddling with disk bus options it now gets a little further and hangs on "starting configure network device".

During the install I kept all VM options as vanilla for Ubuntu 12.04 and selected packages for LAMP + SSH server.

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I'm answering my own question in case someone else runs into this difficulty. I found that setting the guest machine's display driver to VGA using virt-manager cleared up the issue and after this it ran fine.

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I got a very similar problem. What i did to fix it was setting the RAM to less than 2GB (even though it was a x86_64 kernel).

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    The OP already found the cause and the solution... – cmks Mar 21 '16 at 8:54

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