eucalyptus instance reboot fails: Guest moved used index from 0 to 2639

Binary package hint: qemu-kvm

When booting the uec image from alpha-3 (20100803.2) with the loader that is present in the tarball, and eucalyptus.conf on the node controller configured as:
USE_VIRTIO_ROOT="1"

I am unable to reboot an instance.

$ euca-run-instances --key mykey ${alpha3_amd64_loader_ami}
$ ssh 192.168.1.192
% sudo reboot
...
system does not come back up. When I look at the libvirt log for the instance, I see:

Guest moved used index from 0 to 2639

ProblemType: Bug
DistroRelease: Ubuntu 10.10
Package: qemu-kvm 0.12.4+noroms-0ubuntu9
ProcVersionSignature: Ubuntu 2.6.35-14.20-server 2.6.35
Uname: Linux 2.6.35-14-server x86_64
Architecture: amd64
Date: Mon Aug 9 15:44:19 2010
InstallationMedia: Ubuntu-Server 10.10 "Maverick Meerkat" - Alpha amd64 (20100729)
KvmCmdLine:
 UID PID PPID C SZ RSS PSR STIME TTY TIME CMD
 root 21885 1 1 91953 196140 1 14:50 ? 00:00:40 /usr/bin/kvm -S -M pc-0.12 -enable-kvm -m 192 -smp 1,sockets=1,cores=1,threads=1 -name i-4C9C0908 -uuid 944213ac-0d9b-2f56-b5dd-a14527944a88 -nographic -nodefaults -chardev socket,id=monitor,path=/var/lib/libvirt/qemu/i-4C9C0908.monitor,server,nowait -mon chardev=monitor,mode=readline -rtc base=utc -boot c -kernel /var/lib/eucalyptus/instances//admin/i-4C9C0908/kernel -append root=/dev/vda1 console=ttyS0 -drive file=/var/lib/eucalyptus/instances//admin/i-4C9C0908/disk,if=none,id=drive-virtio-disk0,boot=on -device virtio-blk-pci,bus=pci.0,addr=0x4,drive=drive-virtio-disk0,id=virtio-disk0 -device e1000,vlan=0,id=net0,mac=d0:0d:4c:9c:09:08,bus=pci.0,addr=0x5 -net tap,fd=37,vlan=0,name=hostnet0 -chardev file,id=serial0,path=/var/lib/eucalyptus/instances//admin/i-4C9C0908/console.log -device isa-serial,chardev=serial0 -usb -device virtio-balloon-pci,id=balloon0,bus=pci.0,addr=0x3
 root 22824 1 4 90870 192452 1 15:34 ? 00:00:30 /usr/bin/kvm -S -M pc-0.12 -enable-kvm -m 192 -smp 1,sockets=1,cores=1,threads=1 -name i-4A010879 -uuid cfecd16d-a1d0-4b90-f29f-bed50ac33d84 -nographic -nodefaults -chardev socket,id=monitor,path=/var/lib/libvirt/qemu/i-4A010879.monitor,server,nowait -mon chardev=monitor,mode=readline -rtc base=utc -boot ac -drive file=/var/lib/eucalyptus/instances//admin/i-4A010879/loader,if=none,id=drive-fdc0-0-0 -global isa-fdc.driveA=drive-fdc0-0-0 -drive file=/var/lib/eucalyptus/instances//admin/i-4A010879/disk,if=none,id=drive-virtio-disk0,boot=on -device virtio-blk-pci,bus=pci.0,addr=0x4,drive=drive-virtio-disk0,id=virtio-disk0 -device e1000,vlan=0,id=net0,mac=d0:0d:4a:01:08:79,bus=pci.0,addr=0x5 -net tap,fd=36,vlan=0,name=hostnet0 -chardev file,id=serial0,path=/var/lib/eucalyptus/instances//admin/i-4A010879/console.log -device isa-serial,chardev=serial0 -usb -device virtio-balloon-pci,id=balloon0,bus=pci.0,addr=0x3
Lsusb:
 Bus 002 Device 004: ID 10d5:55a4 Uni Class Technology Co., Ltd
 Bus 002 Device 003: ID 04f3:0103 Elan Microelectronics Corp.
 Bus 002 Device 002: ID 058f:9254 Alcor Micro Corp. Hub
 Bus 002 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
 Bus 001 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub
MachineType: Dell Inc. Inspiron 531
ProcCmdLine: BOOT_IMAGE=/vmlinuz-2.6.35-14-server root=/dev/mapper/hostname-root ro quiet
ProcEnviron:
 LANG=en_US.UTF-8
 SHELL=/bin/bash
SourcePackage: qemu-kvm
dmi.bios.date: 06/15/2007
dmi.bios.vendor: Dell Inc.
dmi.bios.version: 1.0.3
dmi.board.name: 0RY206
dmi.board.vendor: Dell Inc.
dmi.board.version: ���
dmi.chassis.type: 3
dmi.chassis.vendor: Dell Inc.
dmi.chassis.version: Chassis Version
dmi.modalias: dmi:bvnDellInc.:bvr1.0.3:bd06/15/2007:svnDellInc.:pnInspiron531:pvr00:rvnDellInc.:rn0RY206:rvr:cvnDellInc.:ct3:cvrChassisVersion:
dmi.product.name: Inspiron 531
dmi.product.version: 00
dmi.sys.vendor: Dell Inc.