Hi,
It shouldn't be neccessary to explicitly connect to the local
machine - if
you have no existing host connections remembered in gconf, it will try to
automatically add a connection to the local Xen or KVM instance. Yes, the
'new VM' icon has proved to be a little too subtle for many people, so
we'll likely revise that bit of UI to make it more obvious in an update.
I
don't think it did for me, but it's been a couple of days, so I may
be misremembering.
--Ray