The title pretty much sums it up.
Create a vm under KVM. It doesn't matter how you do it...whether it's using an image template or create using empty system.
Create two disks in the raw LVM. One will be the data disk the other the swap disk.
Install the OS.
Start the OS up. Make sure the swap partition is active and being used.
Shut the OS down.
Tell cloudmin to delete the instance (and delete any images).
Cloudmin will error out.
Tell it to delete the instance again (and delete any images).
This time, it won't display any errors and the vm will be gone from the vm list.
Go to webmin -> hardware -> manage LVM
Try to delete the image that's still there.
Cloudmin won't let you delete it.
Reboot the cloudmin machine.
Go back into webmin -> hardware -> manage LVM
Try to delete the image that you tried deleting previously.
Now it works.