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Description of problem: All in one support has been dropped in 4.0 but we still need it to some extent in ovirt-live.
No chance of basing ovirt-live on hosted-engine too? This would be really cool. Another option is to use nested kvm for the host. Otherwise, if we have to support it in ovirt-live, not sure why we should deprecate it in engine. Workarounds that we'll need to apply there can probably be applied, even if less easily, on a normal allinone engine machine.
QE just sanity - Live should work.
This bug was fixed and is slated to be in the upcoming version. As we are focusing our testing at this phase on severe bugs, this bug was closed without going through its verification step. If you think this bug should be verified by QE, please set its severity to high and move it back to ON_QA