After upgrading to 12.10 amd64, I was able to run my virtual machine using spice. So the issue seems to be resolved in newer version of qemu-kvm-spice 1.2.
After upgrading to 12.10 amd64, I was able to run my virtual machine using spice. So the issue seems to be resolved in newer version of qemu-kvm-spice 1.2.