1 - console doesn't work on HVM anyway; don't use the -c option
2 - use sdl for the install, not vnc (fewer variables)
3 - use a minimal config; something like (with changes for your name,
MAC address, file system, and qemu-dm location):
kernel = "/usr/lib/xen/boot/hvmloader"
memory = 512
name = "myhvm"
vcpus = 1
vif = [ 'type=ioemu, mac=xx:xx:xx:xx:xx:xx, bridge=xenbr0' ]
disk = [ 'phy:/dev/VG_Guests/FC8-64-001,ioemu:hda,w' ,
device_model = '/usr/lib64/xen/bin/qemu-dm'
boot = "cd"
sdl = 1
vnc = 0
vncviewer = 0
This works for all my hvms, but I add
usb = 1
usbdevice = 'tablet'
if it helps for the mouse tracking.
4 - if the install hangs early on, then you may have a real mode
problem. If so, try a text mode install if possible. If that doesn't
work, give up. But, I thought this wasn't a problem on 3.2 anyway; the
real-mode stuff was apparently rewritten in 3.2.
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