Sometimes you may see the Virt Manager for Fedora 16 stuck at the state connecting.
To fix this, first stop the libvirtd service.
# systemctld stop libvirtd.service
Then in a terminal, run
# ps -ef | grep libvirtd
You will see a few libvirtd processes running. Kill all the processes in one go using this:
# kill `pidof libvirtd`
Restart libvirt
# systemctl start libvirtd.service
Close and reopen your Virt Manager. You should be able to connect now.