kvm will not use kvm-intel kernel module.

Do you have the kvm-intel module loaded and are you a member of the kvm group?

kvm-intel and kvm modules are loaded. I am in the kvm group; still, kvm will not use the kernel module.

I did not see this before. The terminal shows "kvm module too old" when running kvm/qemu.

With latest updates as of March 7th

kvm -cdrom Ubuntu.iso
kvm kernel version too old
Could not initialize KVM, will disable KVM support

This problem will go away once we freeze, but unfortunately there is still skew as packages are worked on. You can find older versions of the kvm package at this page https://launchpad.net/ubuntu/+source/kvm/ and downgrade manually for now. Other than that, there's not much that can be done about it.

Beginning with the Hardy Heron 8.04 development cycle, all open Ubuntu kernel bugs need to be reported against the "linux" kernel package. We are automatically migrating this bug to the new "linux" package. However, development has already began for the upcoming Intrepid Ibex 8.10 release. It would be helpful if you could test the upcoming release and verify if this is still an issue - http://www.ubuntu.com/testing . If the issue still exists, please update this report by changing the Status of the "linux" task from "Incomplete" to "New". We appreciate your patience and understanding as we make this transition. Thanks!