[virt-tools-list] Latest virt-manager and libvirt - no kvm detected

[Deepak C Shetty]

Hi,
     I have VT enabled in my bios and kvm_intel and kvm modules loaded 
as seen from lsmod.
I am trying to run latest VMM (compiled from git src) on ubuntu 11.04 
host and when i try to create
a new VM it says hypervisor not found. I also have /usr/bin/qemu-kvm 
soft linked to my compiled version of qemu in my ~/usr/local/

Because it does not detect the hypervisor, it does not allow me to go 
further from step 1 of create vm.

I am not sure what else I am missing for VMM to give that error.
 From virsh i tried capabilities and it does not have kvm there.

Also i got sometimes 'out of memory' error while trying to do capabilities.

thanx,
deepak