Description of problem:
On a working 3.4.4 CentOS system I upgraded the host to 3.5.1 snapshot and hit bug #1168689

Following http://www.ovirt.org/Hosted_Engine_Howto#Upgrade_Hosted_Engine
I then restarted vdsm:

# service vdsmd restart
Shutting down vdsm daemon: 
vdsm watchdog stop                                         [  OK  ]
vdsm: Running run_final_hooks                              [  OK  ]
vdsm stop                                                  [  OK  ]
initctl: Job is already running: libvirtd
vdsm: Running mkdirs
vdsm: Running configure_coredump
vdsm: Running configure_vdsm_logs
vdsm: Running run_init_hooks
vdsm: Running upgraded_version_check
vdsm: Running check_is_configured
libvirt is not configured for vdsm yet
Modules libvirt are not configured
Error:  

One of the modules is not configured to work with VDSM.
To configure the module use the following:
'vdsm-tool configure [--module module-name]'.

If all modules are not configured try to use:
'vdsm-tool configure --force'
(The force flag will stop the module's service and start it
afterwards automatically to load the new configuration.)
 

 vdsm: stopped during execute check_is_configured task (task returned with error code 1).
vdsm start                                                 [FAILED]





Version-Release number of selected component (if applicable):
Upgrading to:
 vdsm-4.16.7-71.gitc3ea4d5.el6.x86_64
From:
  vdsm-4.14.17-0.el6.x86_64