Learning about KVM, I hit a snag using Michael Jang's RHCSA/RHCE book.

I kept getting the error listed in the title.

If I deleted the .img file, it would come back as owned by root instead of qemu.

The fix: chmod the folders below

[root@localhost pockets]# chmod 777 /home/pockets
[root@localhost pockets]# chmod 777 /var/lib/libvirt/