Running 'update-initramfs' will not resolve the issue for 12.04LTS images. On 12.04 the 3.2 kernel will include version 2.2.0-k of the Intel ixgbevf module. 2.2.0-k is insufficient for supporting the SR-IOV setup in this environment. A kernel with a newer version of the driver is required.
Following up on Dan Krent's update in comment #9.
Running 'update-initramfs' will not resolve the issue for 12.04LTS images. On 12.04 the 3.2 kernel will include version 2.2.0-k of the Intel ixgbevf module. 2.2.0-k is insufficient for supporting the SR-IOV setup in this environment. A kernel with a newer version of the driver is required.