Description of problem:
I have huge problem with virt-manager as it displays errors below [1]. Problem happened after I upgraded in quick succession from F10 to F11 and then to F12. If I do yum update, it says "No Packages marked for Update" - so I'm pretty sure my system is up-to-date F12.
 
My libvirt is running: 
root      8030     1  0 10:34 ?        00:00:00 libvirtd --daemon

However my polkit agent is not running [2]. (not sure if it is a must)
 
Is there any other way how can I get inside my running virtual machine (ssh does not work)?
 

Version-Release number of selected component (if applicable):
Package python-virtinst-0.500.1-2.fc12.noarch already installed and latest version
Package 2:qemu-kvm-0.11.0-13.fc12.x86_64 already installed and latest version
Package virt-manager-0.8.2-3.fc12.noarch already installed and latest version
Package virt-viewer-0.2.0-1.fc12.x86_64 already installed and latest version
Package libvirt-0.7.1-15.fc12.x86_64 already installed and latest version

How reproducible:
Always

Steps to Reproduce:
1. Start virt-manager, try to connect to qemu:///system
2.
3.
  
Actual results:
Displayed below in [1]

Expected results:
I shoutl see my virtual machines.

Additional info:
My virtual machines are working, I can get them start with virsh but not with virt-manager.

[1]
Unable to open connection to hypervisor URI 'qemu:///system':
authentication failed
Traceback (most recent call last):
  File "/usr/share/virt-manager/virtManager/connection.py", line 872, in _try_open
    None], flags)
  File "/usr/lib64/python2.6/site-packages/libvirt.py", line 102, in openAuth
    if ret is None:raise libvirtError('virConnectOpenAuth() failed')
libvirtError: authentication failed
 
Error starting Virtual Machine Manager: Failed to contact configuration server; some possible causes are that you need to enable TCP/IP networking for ORBit, or you have stale NFS locks due to a system crash. See http://projects.gnome.org/gconf/ for information. (Details -  1: Failed to get connection to session: Did not receive a reply. Possible causes include: the remote application did not send a reply, the message bus security policy blocked the reply, the reply timeout expired, or the network connection was broken.)
Traceback (most recent call last):
  File "/usr/share/virt-manager/virt-manager.py", line 404, in <module>
    main()
  File "/usr/share/virt-manager/virt-manager.py", line 335, in main
    icon_dir, data_dir)
  File "/usr/share/virt-manager/virtManager/config.py", line 89, in __init__
    gconf.CLIENT_PRELOAD_NONE)
GError: Failed to contact configuration server; some possible causes are that you need to enable TCP/IP networking for ORBit, or you have stale NFS locks due to a system crash. See http://projects.gnome.org/gconf/ for information. (Details -  1: Failed to get connection to session: Did not receive a reply. Possible causes include: the remote application did not send a reply, the message bus security policy blocked the reply, the reply timeout expired, or the network connection was broken.)
 
[2]
# /usr/libexec/polkit-gnome-authentication-agent-1 &
/[1/] 22686
# 
(polkit-gnome-authentication-agent-1:22686): polkit-gnome-1-WARNING **: Unable to determine the session we are in: Remote Exception invoking org.freedesktop.ConsoleKit.Manager.GetSessionForUnixProcess() on /org/freedesktop/ConsoleKit/Manager at name org.freedesktop.ConsoleKit: org.freedesktop.ConsoleKit.Manager.GeneralError: Unable to lookup session information for process '22686' org.freedesktop.ConsoleKit.Manager.GeneralError Unable%20to%20lookup%20session%20information%20for%20process%20%2722686%27