Recent “zypper update” on November’s openSUSE 11.2 release brought system to the most recent status. Current 2.6.31.8-xen kernel works fine. Seems like a next generation of xenified aka Suse kernels is on the go right now. However, i believe,that vm-install on recently updated 11.2 works same way as before maintenance update. 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. Notice, that F12 PV Guest install doesn’t require HTTP or NFS share , pygrub performs install just via F12 ISO image , like OpenSolaris PV Guests get installed as usual.