There is a bug on the floppy controller of kvm-88. When there is a Floppy inserted, windows setup wont boot from CD (black screen) More info (and a link to a working patch): http://www.mail-archive.com/kvm@vger.kernel.org/msg19649.html
Thanks for the report and for pointing out the fix -- assigning to kvm maintainers.
I can't maintain kvm anymore.
This version has been removed from the tree sometime ago. Please open a new bug if you can duplicate this in the latest version of qemu-kvm in the tree.