Comment 3 for bug 469419

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Bitti (bitaround) wrote : Re: KVM machines became corrupted after reboot

Your hda should be:

<disk type='block' device='disk'>
 <source dev='/dev/vm/ubuntu'/>
 <target dev='hda' bus='ide'/>
</disk>

There is an example:
http://libvirt.org/drvqemu.html