the latest three readlink return an empty reply because the link does not exists at all and this explains the "Cannot open iommu_group: No such file or directory" I got when trying to start a VM with a VF connected.
I was dealing with similar problem like you and today I found the solution for me... maybe it will help you too.
set the rights for the device path
chmod 666 /dev/vfio/*
after that the VM is starting using virtio-pci on pve-kernel-3.10.0-3-pve: 3.10.0-13
machine: q35
hostpci0: 02:00.0,pcie=1,driver=vfio
(I have added also the PCI STUB to the grub command line /etc/default/grub )
GRUB_CMDLINE_LINUX_DEFAULT="quiet intel_iommu=on,igfx_off,pass-through pci-stub.ids=dd01:0003"