HOST i686 and qemu-x86_64 with enable-kvm : detectes an i686 CPU.Can KVM run a 32-bit guest on a 64-bit host? What about PAE?
http://www.linux-kvm.org/page/FAQ#Can_KVM_run_a_32-bit_guest_on_a_64-bit_host.3F_What_about_PAE.3F
KVM supports 32-bit guests on 64-bit hosts, and any combination of PAE and non-PAE guests and hosts. The only unsupported combination is a 64-bit guest on a 32-bit host.
If you are running a Windows Virtual Machine and have problems enabling PAE in your guest see the Windows PAE Workaround page.
