You can run the kvm nixos installation test by:
nix-build --no-out-link tests/test-nixos-install-from-cd.nix
It boots the installed system.
It still fails sshd isn't started (yet)
adding nixos-bootstrapping-archive:
You can install NixOS easily using any live cd now.
See README-BOOTSTRAP-NIXOS
svn path=/nixos/trunk/; revision=18950