Description of problem:

At http://www.redhat.com/docs/en-US/Red_Hat_Enterprise_Linux/5.5/html/Virtualization_Guide/form-Virtualization-Installing_the_KVM_Windows_para_virtualized_drivers-Using_KVM_para_virtualized_drivers_for_existing_devices.html


2. Change the entry to use the para-virtualized device by modifying the bus= entry to virtio.

<disk type='file' device='disk'>
   <source file='/var/lib/libvirt/images/disk1.img'/>
   <target dev='hda' bus='virtio'/>
</disk>         ^^^

"hda" need to changed to "vda" as below.

<disk type='file' device='disk'>
   <source file='/var/lib/libvirt/images/disk1.img'/>
   <target dev='vda' bus='virtio'/>
</disk>         ^^^   


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