Question : Even though iptables is turned OFF using ‘chkconfig –level 345 iptables off’, ‘service iptables status’ still displays some iptables rules after every reboot.

Answer :
The Libvirtd process will add iptables rules into iptables when starting libvirtd. iptables will run when starting libvirtd, even if iptables was disabled before. These rules will not impact firewall configuration for the physical network. If xen environment is not used, these rules are not needed at all. In a non-xen environment, it is safe to turn the service libvirtd off by running:

# chkconfig --level 345 libvirtd off
# service libvirtd stop