diff -Nru libvirt-0.9.8/debian/changelog libvirt-0.9.8/debian/changelog
--- libvirt-0.9.8/debian/changelog	2012-03-29 18:06:31.000000000 +0200
+++ libvirt-0.9.8/debian/changelog	2012-04-04 18:21:22.000000000 +0200
@@ -1,3 +1,11 @@
+libvirt (0.9.8-2ubuntu16) precise; urgency=low
+
+  * Do not use vfb sections in HVM graphics definitions (side-
+    effect will create a vkbd device as well which causes error
+    messages in the HVM guest). (LP: #973529)
+
+ -- Stefan Bader <stefan.bader@canonical.com>  Wed, 04 Apr 2012 17:55:44 +0200
+
 libvirt (0.9.8-2ubuntu15) precise; urgency=low
 
   [ Stefan Bader ]
diff -Nru libvirt-0.9.8/debian/patches/series libvirt-0.9.8/debian/patches/series
--- libvirt-0.9.8/debian/patches/series	2012-03-23 11:23:34.000000000 +0100
+++ libvirt-0.9.8/debian/patches/series	2012-04-04 17:55:31.000000000 +0200
@@ -30,3 +30,4 @@
 ubuntu/skip-labelling-network-disks.patch
 ubuntu/xen-xend-shutdown-detection.patch
 ubuntu/xen-hypervisor-getvcpus-may-not-find-domid.patch
+ubuntu/xen-config-no-vfb-for-hvm.patch
diff -Nru libvirt-0.9.8/debian/patches/ubuntu/xen-config-no-vfb-for-hvm.patch libvirt-0.9.8/debian/patches/ubuntu/xen-config-no-vfb-for-hvm.patch
--- libvirt-0.9.8/debian/patches/ubuntu/xen-config-no-vfb-for-hvm.patch	1970-01-01 01:00:00.000000000 +0100
+++ libvirt-0.9.8/debian/patches/ubuntu/xen-config-no-vfb-for-hvm.patch	2012-04-04 17:55:18.000000000 +0200
@@ -0,0 +1,53 @@
+UBUNTU: xen: Do not use vfb device in HVM definitions
+
+When talking to xend to create or modify an HVM instance,
+graphics should be defined outside (without) any vfb device.
+(see http://lists.xen.org/archives/html/xen-users/2011-11/msg00119.html)
+
+The vfb definition works just out of luck, but doing so also defines
+a vkbd device which causes xenbus init to fail after a long
+time retrying.
+
+Signed-off-by: Stefan Bader <stefan.bader@canonical.com>
+Index: libvirt-0.9.8/src/xenxs/xen_xm.c
+===================================================================
+--- libvirt-0.9.8.orig/src/xenxs/xen_xm.c	2012-04-03 17:09:59.000000000 +0200
++++ libvirt-0.9.8/src/xenxs/xen_xm.c	2012-04-04 14:36:38.434001687 +0200
+@@ -1669,7 +1669,7 @@ virConfPtr xenFormatXM(virConnectPtr con
+     }
+ 
+     if (def->ngraphics == 1) {
+-        if (xendConfigVersion < (hvm ? 4 : XEND_CONFIG_MIN_VERS_PVFB_NEWCONF)) {
++        if (hvm || (xendConfigVersion < XEND_CONFIG_MIN_VERS_PVFB_NEWCONF)) {
+             if (def->graphics[0]->type == VIR_DOMAIN_GRAPHICS_TYPE_SDL) {
+                 if (xenXMConfigSetInt(conf, "sdl", 1) < 0)
+                     goto no_memory;
+Index: libvirt-0.9.8/src/xenxs/xen_sxpr.c
+===================================================================
+--- libvirt-0.9.8.orig/src/xenxs/xen_sxpr.c	2012-04-03 17:09:59.000000000 +0200
++++ libvirt-0.9.8/src/xenxs/xen_sxpr.c	2012-04-04 17:41:41.228280488 +0200
+@@ -2296,9 +2296,8 @@ xenFormatSxpr(virConnectPtr conn,
+             }
+         }
+ 
+-        /* PV graphics for xen <= 3.0.4, or HVM graphics for xen <= 3.1.0 */
+-        if ((!hvm && xendConfigVersion < XEND_CONFIG_MIN_VERS_PVFB_NEWCONF) ||
+-            (hvm && xendConfigVersion < 4)) {
++        /* PV graphics for xen <= 3.0.4, or HVM graphics */
++        if (hvm || (xendConfigVersion < XEND_CONFIG_MIN_VERS_PVFB_NEWCONF)) {
+             if ((def->ngraphics == 1) &&
+                 xenFormatSxprGraphicsOld(def->graphics[0],
+                                          &buf, xendConfigVersion) < 0)
+@@ -2327,10 +2326,8 @@ xenFormatSxpr(virConnectPtr conn,
+     if (xenFormatSxprAllPCI(def, &buf) < 0)
+         goto error;
+ 
+-    /* New style PV graphics config xen >= 3.0.4,
+-     * or HVM graphics config xen >= 3.0.5 */
+-    if ((xendConfigVersion >= XEND_CONFIG_MIN_VERS_PVFB_NEWCONF && !hvm) ||
+-        (xendConfigVersion >= 4 && hvm)) {
++    /* New style PV graphics config xen >= 3.0.4 */
++    if (!hvm && (xendConfigVersion >= XEND_CONFIG_MIN_VERS_PVFB_NEWCONF)) {
+         if ((def->ngraphics == 1) &&
+             xenFormatSxprGraphicsNew(def->graphics[0], &buf) < 0)
+             goto error;