we now end with this error:

May 16 16:53:43 trautenberg libvirtd[32702]: ethtool ioctl error: No such device
May 16 16:53:43 trautenberg libvirtd[11926]: failed to connect to monitor socket: No such process
May 16 16:53:43 trautenberg libvirtd[11926]: internal error: process exited while connecting to monitor: 
                                             (process:23756): GLib-WARNING **: gmem.c:482: custom memory allocation vtable not supported
                                             2016-05-16T14:53:42.977645Z qemu-kvm: neither port nor tls-port specified for spice

so we need yet another piece to be backported into qemu-kvm-1.5.*.

Please add libvirt XML for the problematic VM, as well as the libvirt log for this VM (this should contain the qemu command line which is failing).

Ah, this specific error was removed by
http://git.qemu.org/?p=qemu.git;a=commitdiff;h=cf7856adefebe86e0cd50302d93b3045e3111690 "spice: do not require TCP ports"

Created attachment 1158237 [details]
xml dump of vm

Created attachment 1158239 [details]
libvirt logs

Is this bug on the radar for 7.3 ? We have a boxes bug that depends on it

backport posted.

Fix included in qemu-kvm-1.5.3-115.el7

Reproduce this bug against qemu-kvm-1.5.3-114.el7.x86_64

virsh xml used:
<domain type='kvm' id='2'>
  <name>rhel73ss1</name>
  <uuid>b9d20ea3-5174-4fe7-a038-7e3028de3b66</uuid>
  <memory unit='KiB'>1048576</memory>
  <currentMemory unit='KiB'>1048576</currentMemory>
  <vcpu placement='static'>1</vcpu>
  <resource>
    <partition>/machine</partition>
  </resource>
  <os>
    <type arch='x86_64' machine='pc-i440fx-rhel7.0.0'>hvm</type>
    <boot dev='hd'/>
  </os>
  <features>
    <acpi/>
    <apic/>
  </features>
  <cpu mode='custom' match='exact'>
    <model fallback='allow'>SandyBridge</model>
  </cpu>
  <clock offset='utc'>
    <timer name='rtc' tickpolicy='catchup'/>
    <timer name='pit' tickpolicy='delay'/>
    <timer name='hpet' present='no'/>
  </clock>
  <on_poweroff>destroy</on_poweroff>
  <on_reboot>restart</on_reboot>
  <on_crash>restart</on_crash>
  <pm>
    <suspend-to-mem enabled='no'/>
    <suspend-to-disk enabled='no'/>
  </pm>
  <devices>
    <emulator>/usr/libexec/qemu-kvm</emulator>
    <disk type='file' device='disk'>
      <driver name='qemu' type='qcow2'/>
      <source file='/home/ss1rhel73.qcow2'/>
      <backingStore/>
      <target dev='vda' bus='virtio'/>
      <alias name='virtio-disk0'/>
      <address type='pci' domain='0x0000' bus='0x00' slot='0x07' function='0x0'/>
    </disk>
    <controller type='usb' index='0' model='ich9-ehci1'>
      <alias name='usb'/>
      <address type='pci' domain='0x0000' bus='0x00' slot='0x06' function='0x7'/>
    </controller>
    <controller type='usb' index='0' model='ich9-uhci1'>
      <alias name='usb'/>
      <master startport='0'/>
      <address type='pci' domain='0x0000' bus='0x00' slot='0x06' function='0x0' multifunction='on'/>
    </controller>
    <controller type='usb' index='0' model='ich9-uhci2'>
      <alias name='usb'/>
      <master startport='2'/>
      <address type='pci' domain='0x0000' bus='0x00' slot='0x06' function='0x1'/>
    </controller>
    <controller type='usb' index='0' model='ich9-uhci3'>
      <alias name='usb'/>
      <master startport='4'/>
      <address type='pci' domain='0x0000' bus='0x00' slot='0x06' function='0x2'/>
    </controller>
    <controller type='pci' index='0' model='pci-root'>
      <alias name='pci.0'/>
    </controller>
    <controller type='virtio-serial' index='0'>
      <alias name='virtio-serial0'/>
      <address type='pci' domain='0x0000' bus='0x00' slot='0x05' function='0x0'/>
    </controller>
    <interface type='bridge'>
      <mac address='52:54:00:79:4d:4f'/>
      <source bridge='br0'/>
      <target dev='vnet0'/>
      <model type='virtio'/>
      <alias name='net0'/>
      <address type='pci' domain='0x0000' bus='0x00' slot='0x03' function='0x0'/>
    </interface>
    <serial type='pty'>
      <source path='/dev/pts/2'/>
      <target port='0'/>
      <alias name='serial0'/>
    </serial>
    <console type='pty' tty='/dev/pts/2'>
      <source path='/dev/pts/2'/>
      <target type='serial' port='0'/>
      <alias name='serial0'/>
    </console>
    <channel type='unix'>
      <source mode='bind' path='/var/lib/libvirt/qemu/channel/target/domain-2-rhel73ss1/org.qemu.guest_agent.0'/>
      <target type='virtio' name='org.qemu.guest_agent.0' state='connected'/>
      <alias name='channel0'/>
      <address type='virtio-serial' controller='0' bus='0' port='1'/>
    </channel>
    <channel type='spicevmc'>
      <target type='virtio' name='com.redhat.spice.0' state='connected'/>
      <alias name='channel1'/>
      <address type='virtio-serial' controller='0' bus='0' port='2'/>
    </channel>
    <input type='tablet' bus='usb'>
      <alias name='input0'/>
      <address type='usb' bus='0' port='1'/>
    </input>
    <input type='mouse' bus='ps2'>
      <alias name='input1'/>
    </input>
    <input type='keyboard' bus='ps2'>
      <alias name='input2'/>
    </input>
    <graphics type='spice' autoport='no'>
      <image compression='off'/>
    </graphics>
    <sound model='ich6'>
      <alias name='sound0'/>
      <address type='pci' domain='0x0000' bus='0x00' slot='0x04' function='0x0'/>
    </sound>
    <video>
      <model type='qxl' ram='65536' vram='65536' vgamem='16384' heads='1' primary='yes'/>
      <alias name='video0'/>
      <address type='pci' domain='0x0000' bus='0x00' slot='0x02' function='0x0'/>
    </video>
    <redirdev bus='usb' type='spicevmc'>
      <alias name='redir0'/>
      <address type='usb' bus='0' port='2'/>
    </redirdev>
    <redirdev bus='usb' type='spicevmc'>
      <alias name='redir1'/>
      <address type='usb' bus='0' port='3'/>
    </redirdev>
    <memballoon model='virtio'>
      <alias name='balloon0'/>
      <address type='pci' domain='0x0000' bus='0x00' slot='0x08' function='0x0'/>
    </memballoon>
  </devices>
  <seclabel type='dynamic' model='selinux' relabel='yes'>
    <label>system_u:system_r:svirt_t:s0:c925,c975</label>
    <imagelabel>system_u:object_r:svirt_image_t:s0:c925,c975</imagelabel>
  </seclabel>
  <seclabel type='dynamic' model='dac' relabel='yes'>
    <label>+107:+107</label>
    <imagelabel>+107:+107</imagelabel>
  </seclabel>
</domain>

Steps:
virsh create guest.xml

Results:
# virsh create guest.xml 
error: Failed to create domain from guest.xml
error: internal error: process exited while connecting to monitor: t.spice.0 -device usb-tablet,id=input0,bus=usb.0,port=1 -spice port=0,disable-ticketing,image-compression=off,seamless-migration=on -vga qxl -global qxl-vga.ram_size=67108864 -global qxl-vga.vram_size=67108864 -global qxl-vga.vgamem_mb=16 -device intel-hda,id=sound0,bus=pci.0,addr=0x4 -device hda-duplex,id=sound0-codec0,bus=sound0.0,cad=0 -chardev spicevmc,id=charredir0,name=usbredir -device usb-redir,chardev=charredir0,id=redir0,bus=usb.0,port=2 -chardev spicevmc,id=charredir1,name=usbredir -device usb-redir,chardev=charredir1,id=redir1,bus=usb.0,port=3 -device virtio-balloon-pci,id=balloon0,bus=pci.0,addr=0x8 -msg timestamp=on

(process:16575): GLib-WARNING **: gmem.c:482: custom memory allocation vtable not supported
2016-09-02T09:25:05.513154Z qemu-kvm: neither port nor tls-port specified for spice

Verify with qemu-kvm-1.5.3-122.el7.x86_64:

Results:
# virsh create guest.xml 
Domain rhel73ss1 created from guest.xml
#virt-viewer -a rhel73ss1
# virsh qemu-monitor-command --hmp rhel73ss1 info spice
Server:
    migrated: false
        auth: none
    compiled: 0.12.4
  mouse-mode: client
Channel:
     address: localhost:
     session: 1525999565
     channel: 1:0
....

Move to verified per comment 10

Since the problem described in this bug report should be
resolved in a recent advisory, it has been closed with a
resolution of ERRATA.

For information on the advisory, and where to find the updated
files, follow the link below.

If the solution does not work for you, open a new bug report.

https://rhn.redhat.com/errata/RHSA-2016-2585.html