Problem with Quantal and a KVM

[Dale Amon]

Just fyi, this is the grub default set up I am using
right now. I did try a number of different settings
but they did not seem to make any difference. Perhaps
this is because of the stuff being compiled that 
you noted.

This is the grub default settings I typically use:

GRUB_DEFAULT=0
#GRUB_HIDDEN_TIMEOUT=0

GRUB_TIMEOUT=15
GRUB_HIDDEN_TIMEOUT_QUIET=false

GRUB_DISTRIBUTOR=`lsb_release -i -s 2> /dev/null || echo Debian`
GRUB_CMDLINE_LINUX_DEFAULT=" max_loop=64 panic=200"
GRUB_CMDLINE_LINUX=""

# DMA20121217 Use these instead if I set up a serial console
GRUB_CMDLINE_LINUX_DEFAULT="console=tty0 console=ttyS0,115200n8 max_loop=64 panic=200"
GRUB_TERMINAL="serial console"
GRUB_SERIAL_COMMAND="serial --speed=115200 --unit=0 --word=8 --parity=no --stop=1"

# Uncomment to enable BadRAM filtering, modify to suit your needs
# This works with Linux (no patch required) and with any kernel that obtains
# the memory map information from GRUB (GNU Mach, kernel of FreeBSD ...)
#GRUB_BADRAM="0x01234567,0xfefefefe,0x89abcdef,0xefefefef"

# Uncomment to disable graphical terminal (grub-pc only)
#GRUB_TERMINAL=console

# DMA20121218. This is new, suggested to me by Tom H on the ubuntudev list
#GRUB_GFXPAYLOAD_LINUX=text

# The resolution used on graphical terminal
# note that you can use only modes which your graphic card supports via VBE
# you can see them in real GRUB with the command `vbeinfo'
#GRUB_GFXMODE=640x480

# Uncomment if you don't want GRUB to pass "root=UUID=xxx" parameter to Linux
#GRUB_DISABLE_LINUX_UUID=true

# Uncomment to disable generation of recovery mode menu entries
#GRUB_DISABLE_RECOVERY="true"

# Uncomment to get a beep at grub start
#GRUB_INIT_TUNE="480 440 1"