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Fully Virtualized +KVM isn't working



In virt-manager, I have Fully Virtualized/Enable kernel/ hardware acceleration checked and I get the following error.

Hardware Support Required
Your hardware does not appear to support full virtualization.
Only paravirtualized guests will be available on this hardware.

# lsmod |grep kvm
kvm_intel              30285  0
kvm                    70845  1 kvm_intel


# cat /proc/cpuinfo
processor       : 0
vendor_id       : GenuineIntel
cpu family      : 6
model           : 15
model name      : Intel(R) Core(TM)2 CPU         T7200  @ 2.00GHz
stepping        : 6
cpu MHz         : 2000.000
cache size      : 4096 KB
physical id     : 0
siblings        : 2
core id         : 0
cpu cores       : 2
fpu             : yes
fpu_exception   : yes
cpuid level     : 10
wp              : yes
flags           : fpu vme de pse tsc msr pae mce cx8 apic sep mtrr pge mca cmov pat pse36 clflush dts acpi mmx fxsr sse sse2 ss ht tm syscall nx lm constant_tsc pni monitor ds_cpl vmx est tm2 ssse3 cx16 xtpr lahf_lm
bogomips        : 3993.49
clflush size    : 64
cache_alignment : 64
address sizes   : 36 bits physical, 48 bits virtual
power management:

processor       : 1
vendor_id       : GenuineIntel
cpu family      : 6
model           : 15
model name      : Intel(R) Core(TM)2 CPU         T7200  @ 2.00GHz
stepping        : 6
cpu MHz         : 2000.000
cache size      : 4096 KB
physical id     : 0
siblings        : 2
core id         : 1
cpu cores       : 2
fpu             : yes
fpu_exception   : yes
cpuid level     : 10
wp              : yes
flags           : fpu vme de pse tsc msr pae mce cx8 apic sep mtrr pge mca cmov pat pse36 clflush dts acpi mmx fxsr sse sse2 ss ht tm syscall nx lm constant_tsc pni monitor ds_cpl vmx est tm2 ssse3 cx16 xtpr lahf_lm
bogomips        : 3989.50
clflush size    : 64
cache_alignment : 64
address sizes   : 36 bits physical, 48 bits virtual
power management:


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