Libvirt deployment

Hi,
I just tried to deploy my first VM on libvirt but when I try to create the
host I get this:

Unable to save
Failed to power up a compute desktop (Libvirt) instance test123.local: Call
to virDomainCreateWithFlags failed: internal error Process exited while
reading console log output: parse error:
control,unix:/var/lib/libvirt/qemu/test123.local.monitor,server,nowait
This is what I get in the libvirt log on the compute node (Fedora 15 with
updated libvirt/qemu/kvm stack):

2012-08-16 18:18:17.488+0000: 2219: error : qemuBuildCommandLine:3681 :
unsupported configuration: the QEMU binary /usr/bin/qemu-kvm does not
support kvm
2012-08-16 18:18:17.725+0000: 2219: error : qemuProcessReadLogOutput:1014 :
internal error Process exited while reading console log output: parse
error:
control,unix:/var/lib/libvirt/qemu/test123.local.monitor,server,nowait
2012-08-16 18:18:17.789+0000: 2219: warning :
SELinuxRestoreSecurityFileLabel:550 : cannot lookup default selinux label
for /mnt/backup02/libvirt/images/test123.local-disk1

Any ideas what is going on here?

Regards,
Dennis