Comment 2 for bug 383068

I do expect that to work, slow as it might be.

The point is that you should be able to select the ISO, even if that ISO is only located on the server.
Launching virt-manager remotely defeats the point of having built-in SSH support. I'm also not a big fan of installing an entire desktop environment on a server, just to run 1 little program. Take a look at the dependencies of virt-manager. You don't want that on a command-line only system.