Ah I never gave KVM or virtualization a try in Gentoo.  None of my servers have X though using X11 forwarding still works.  In CentOS the package is xorg-x11-xauth  , looks like it may be x11-apps/xauth in Gentoo.
No X anywhere in my environment <smile>.  Somehow I normally manage!


Does "virsh iface-list" show tap5?
Actually that command errors out:

virsh # iface-list
error: Failed to list active interfaces
error: this function is not supported by the connection driver: virConnectNumOfInterfaces



For the disk, this is what I have for my virtio disks...

    <disk type='file' device='disk'>
      <driver name='qemu' type='qcow2'/>
      <source file='/vmstore/images/domain0001.qcow2'/>
      <target dev='vdb' bus='virtio'/>
      <address type='pci' domain='0x0000' bus='0x00' slot='0x06' function='0x0'/>
    </disk>

My XML had the type wrong, setting it to raw.

Alas, I still see the invoked KVM being passed: 

 -drive file=/kvms/test1.img,if=none,id=drive-virtio-disk0,boot=on,format=qcow2

The "if=none" is the problem, it needs to be "if=virtio".  KVM is also still being passed the "-S" flag as its first parameter, so the CPUs are not starting. 


Also maybe add something like this to your virt-install line...

"--disk path=test1.img,device=disk,bus=virtio"

At this point, I'm just editing the XML, its easier.  Once I get one working, I can tweak for the others.  Virt-install at least got me started.

Kevin