It is very convenient to be able to quickly spin up a local VM in order to do some sort of bug verification or testing. Generally I can use a cloud provider to spin up an instance, but occasionally you need the flexibility of a local VM in order to setup more complex networking or other specific environments.
This link  was extremely helpful in figuring our how to setup a ready to boot image, but I noticed a few issues. First, on Precise I didn't have the cloud-localds tool, and second there wasn't a very simple way to import the image into libvirt.
The cloud-localds problem was solved easily by branching the latest copy and using it locally. Virt-install can be easily used to create a domain based on the image.
Below is a snippet to be run after using Scott's original script: