The version of xorg-x11-drv-qxl shipped in F16 installation DVD causes temporary hangs that lasts for enough number of seconds for libvirt to timeout. The result is that apps (e.g Boxes) using the domain in question lose their connection to it because of this timeout and are then unable to manipulate the VM in any way, unless/until the app is restarted. The solution is to update xorg-x11-drv-qxl to latest version available in the repository (0.0.21-13.fc16). Could the installer DVDs be updated to get this fixed?
We do not do respins of the installer DVDs. Sorry.