I notice you are using i686 qemu. Does this work with the most recent kernel from testing/koji? I am not able to reproduce the lvm issues, but there is an issue with i686 kvm which is resolved with the latest koji kernels for F14.
Closing this one. The i686 fix has been pushed to live, and I cannot reproduce. Please feel free to reopen if the i686 updated kernel does not fix the issue for you.