CentOS virt - Apr 2009 - virsh can not connect, but virt-manager does

Hi,

i am having problems with virsh utility. I have installed 3 KVM virtual 
OS-es on top of CentOS 5.3 i386 (with kernel 
2.6.18-92.1.22.el5.centos.plus from 5.2, necessary on AMD/ATI MB I 
have). I have compiled KVM modules from lfarkash-es sorce rpm's and 
libvirt and managers are recompiled from Fedoras repositories.

Problem is following:

Guests are installed with virt-manager and whenever I start him I can 
start and login to guest. on virt-manager's GUI says it connects to 
"qemu:///system" on localhost.

when I try to use virsh with:

[drlove at vmaster ~]$ virsh --connect qemu:///system
error: failed to connect to the hypervisor

same is with root user.

It seams I have leftovers from few versions (just find out), I will see 
  to they I reinstalled:

[root at vmaster ~]# rpm -qa *kvm*
kvm-tools-83-5
etherboot-roms-kvm-5.4.4-8
kvm-kmod-debuginfo-83-1
kmod-kvm-83-1
kvm-83-5
kmod-kvm-84-1.el5
[root at vmaster ~]#

, but since virt-manager is working this should not cause this problem.

I saw this:
http://www.linux-kvm.org/page/Running_libvirt_with_KVM

where it says to create symlink for /usr/bin/kvm but they point to 
X86_64 file and I have i386 kernel.

I hope someone can help me. Any output you need, just say, i am 
experienced with linux.

Ljubomir