Registration of a RHEV 3.1 host fails with "Server does not support virtualization".

Issue

When attempting to add a RHEL host to the RHEV Manager, the host registration process fails with the following sequence reported in /var/log/ovirt-engine/engine.log;

2012-12-12 11:31:14,118 INFO  [org.ovirt.engine.core.bll.VdsInstaller] (NioProcessor-6) Installation of x.x.x.x. Received message: <BSTRAP component='VT_SVM' status='FAIL' processor='Intel' message='Server does not support virtualization'/>. FYI. (Stage: Running first installation script on Host)
2012-12-12 11:31:14,122 ERROR [org.ovirt.engine.core.bll.VdsInstaller] (NioProcessor-6) Installation of x.x.x.x. Received message: <BSTRAP component='RHEV_INSTALL' status='FAIL'/>. Error occured. (Stage: Running first installation script on Host)