On RHEL 5, Xen guest creation fails with error: "Unable to complete install 'libvirt.libvirtError POST operation failed: xend_post: error from xen daemon: (xend.err 'Device 0 (vif) could not be connected. Hotplug scripts not working.')"

Issue

While creating a new Xen guest an error is received while waiting for virt-manager to create the VM. The error received is:

Unable to complete install 'libvirt.libvirtError POST operation failed:
xend_post: error from xen daemon: (xend.err 'Device 0 (vif) could not
be connected. Hotplug scripts not working.') 
Traceback (most recent call last): 
  File "/usr/share/virt-manager/virtManager/create.py", line 724, in do_install 
    dom = guest.start_install(False, meter = meter) 
  File "/usr/lib/python2.4/site-packages/virtinst/Guest.py", line 541, in start_install 
    return self._do_install(consolecb, meter, removeOld, wait) 
  File "/usr/lib/python2.4/site-packages/virtinst/Guest.py", line 633, in _do_install 
    self.domain = self.conn.createLinux(install_xml, 0) 
  File "/usr/lib64/python2.4/site-packages/libvirt.py", line 974, in createLinux 
    if ret is None:raise libvirtError('virDomainCreateLinux() failed', conn=self) 
libvirtError:
POST operation failed: xend_post: error from xen daemon: (xend.err
'Device 0 (vif) could not be connected. Hotplug scripts not working.')