In case someone else encounters this...
Today none of my VMs would start on F15:
# virsh create rawhide.xml
error: Failed to create domain from rawhide.xml
error: Unable to create cgroup for rawhide: No such file or directory
Luckily, I noticed that Rich Jones had the same problem
a week ago and he found that restarting libvirtd was enough
to solve the problem:
# service libvirtd restart
That did it for me, too.