Have you looked into using virt-manager? When I started using KVM I found that new VM provisioning was much simpler with that interface.
Once you've created your domain with "virt-install" you can make changes using virsh.
virsh -c qemu:///system edit Test
That will allow you to directly edit the domain.
In the virt-install line you used "bridge=br0" , maybe replace that with "bridge=tap5". If that doesn't do it, once your editing the XML you can try something like the following...
<interface type='bridge'><mac address='52:54:00:4d:74:c7'/><source bridge='tap5'/><model type='virtio'/><address type='pci' domain='0x0000' bus='0x00' slot='0x03' function='0x0'/></interface>
That was created using virt-manager, so you probably need to use what virt-install created for your mac address and address.
Is your init failing on /dev/vda3 and then kernel panic? If so it's likely your guest OS doesn't have the necessary kernel modules loaded. Depending on your distro it will vary, but using CentOS 6 I've found they are automatically loaded. This is what's loaded in CentOS 6
# lsmod | grep virtiovirtio_blk 5087 5virtio_pci 6733 0virtio_ring 7169 2 virtio_blk,virtio_pcivirtio 4824 2 virtio_blk,virtio_pci
Try changing the disk to ide , and then verifying your system is able to load the virtio modules.
Also , once you have your XML the way you like, if your going to stick with command line look at using virsh though I highly recommend virt-manager.
I'm still very new to KVM myself, so hopefully that was of some use
- Trey