On F16 libguestfs seems to be pulled in by virtmanager and pulls in MAKEDEV. MAKEDEV is entirely obsolete and should not be used anymore. In times of udev and dynamic major/minor numbers it has no use at all, and is a source of confusion. Please drop the dependency on MAKEDEV, as that tool should not be around on any new installation. In fact, MAKEDEV should be removed entirely from the distribution.
We're probably going to drop the virt-manager -> libguestfs dependency. It's a shame RPM doesn't support optional deps like dpkg. As for the libguestfs -> MAKEDEV dependency, it shouldn't be there. It's for a fallback case when udev doesn't exist, but since udev always exists, there's no reason to have it. I'll remove it soon.
FYI, virt-manager in rawhide and f16-updates has dropped the libguestfs dep
*** Bug 734505 has been marked as a duplicate of this bug. ***
This is now fixed in libguestfs 1:1.13.10-2.fc17 libguestfs 1:1.12.5-3.fc16 These packages are still building.
libguestfs-1.12.5-3.fc16 has been submitted as an update for Fedora 16. https://admin.fedoraproject.org/updates/libguestfs-1.12.5-3.fc16
Package libguestfs-1.12.5-3.fc16: * should fix your issue, * was pushed to the Fedora 16 testing repository, * should be available at your local mirror within two days. Update it with: # su -c 'yum update --enablerepo=updates-testing libguestfs-1.12.5-3.fc16' as soon as you are able to. Please go to the following url: https://admin.fedoraproject.org/updates/libguestfs-1.12.5-3.fc16 then log in and leave karma (feedback).
libguestfs-1.12.6-1.fc16 has been submitted as an update for Fedora 16. https://admin.fedoraproject.org/updates/libguestfs-1.12.6-1.fc16
libguestfs-1.12.6-1.fc16 has been pushed to the Fedora 16 stable repository. If problems still persist, please make note of it in this bug report.