Description of problem: Probably caused by some library function call creating a .uml directory in the omedir. I would really prefer that libvirt did not write to /root. I attempted to set HOME in the init script but it did not have any effect.
Thanks Dan, but you've seen this before :-) *** This bug has been marked as a duplicate of bug 499536 ***
Probably, I go blury eyed by everything I have seen.