How to migrate KVM virtual Machine

You can't use bridge mode in such environment, you can almost be certain that the hosting partner will block all traffic not originating from the MAC-address of the real NIC in your server. You'll need to setup a routed setup, in which all traffic to/from VM guests are send through your host. One way of doing this is using the native Libvirt support of routed networking ("forward mode="route" in the XML-configuration of the network).

There's a German server hosting company who has written a couple of guides on the subject, you can use Google translate to translate it into English, in case you don't understand German :) http://wiki.hetzner.de/index.php/Kategorie:KVM

I decided I will shutdown my machine and boot it from live CD. But I found some interesting how to for windows: http://www.petri.co.il/physical-to-virtual-with-disk2vhd.htm

There is also interesting tool from vmware that can do what I need (migrate linux machine) but it needs windows to be used as VM host - http://www.vmware.com/products/converter/