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a60fb26
(Get the code!)
---snip---
Using sdX for block devices inside the VM is incorrect. They should be xvdX. This was patched unilaterally by Ubuntu, and then reverted when they realised the mistake they'd made.
https:/
This has sadly made it into 10.10, but it's not this way in any other version, before or since. If you change this default, you break every other kernel other than Ubuntu 10.10.
---snap---
Workaround is to simple use a modified libvirt template like suggested by Thierry Carrez. I'll close this bug as Invalid.