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Performed “zypper update” on November’s 11.2 release and brought system to the most recent status. Current 2.6.31.8-xen kernel is OK now. However, I believe,that vm-install in recently updated 11.2 works same way as before maintenance. View bugzilla.novell.com
So, in meantime vm-install doesn’t inderstand either HTTP or CDROM sources attempting to create PV Guest and virsh scripting appears to be the only one option to create Xen PV Guests manageable via virt-manager.
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