[libvirt] libvir: error could not connect to qemu://localhost/system

I downloaded libvirt on December 14 and did the installation procedure (autogen, make, make install). I installed it on host which worked fine with a previous version. However, now the libvirtd is not accepting remote connections. What has changed in this version? Am I doing something wrong? Details: I brought up libvirtd in listen mode: [root@arenal kvm1]# ps -ef | grep libvirtd root 1443 803 0 15:34 pts/3 00:00:00 grep libvirtd? root 32258 5093 0 15:12 pts/1 00:00:00 libvirtd --listen I ran virsh and it works fine as long as the connection is not remote. virsh # version Compiled against library: libvir 0.5.1 Using library: libvir 0.5.1 Using API: QEMU 0.5.1 Running hypervisor: QEMU 0.9.0 virsh # connect test:///default virsh # connect qemu:///system I then tried to connect to itself (the host has credentials for both client and host). But it fails: virsh # connect qemu://arenal/system libvir: error : could not connect to qemu://arenal/system error: Failed to connect to the hypervisor virsh # connect test://arenal/default libvir: error : could not connect to test://arenal/default error: Failed to connect to the hypervisor Kenneth Nagin