When using libvirt with an older qemu release than 1.6.0, creating a new VM will fail in the initial step with an error like this: > internal error: process exited while connecting to monitor: Failed to allocate 1073741824 B: Cannot allocate memory I cannot find any upstream bug or other reports, but can clearly reproduce the situation here by switching back and forth between qemu-1.6.1 and 1.5.3. This can be solved by upgrading to >=app-emulation/qemu-1.6.0 which should be pulled in automatically by >=app-emulation/libvirt-1.2.0
This is a bug in libvirt as it should not depend on a specific qemu version. Please retry with the current versions in tree.
Thanks, working now and can't reproduce it anymore.