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With latest selinux-policy (3.10.0-74), virt-manager runs and finds libvirt (that's fixed since -72), but cannot launch a VM, as selinux prevents it executing /usr/bin/qemu-kvm: [ 95.219139] type=1400 audit(1326315153.934:17): avc: denied { entrypoint } for pid=2130 comm="libvirtd" path="/usr/bin/qemu-kvm" dev=dm-2 ino=170270 scontext=system_u:system_r:svirt_t:s0:c754,c782 tcontext=system_u:object_r:bin_t:s0 tclass=file setenforce Permissive allows the VM to run, confirming the denial is the problem.
chcon -t qemu_exec_t /usr/bin/qemu-kvm Will fix the problem. Fixed in selinux-policy-3.10.0-75.fc17