When "Microsoft Windows 7/2008" profile is selected on OS tab during VM creation, then qemu will be invoked with options -cpu kvm64,hv_spinlocks=0xffff,hv_relaxed,+lahf_lm,+x2apic,+sep -global kvm-pit.lost_tick_policy=discard, so when VM is started Windows dies with bsod code 0x5d (Unsupported processor). But when CPU is set to `host' it works as it should. May be this problem should be listed in wiki.