diff --git a/virt-manager.changes b/virt-manager.changes
index 93571ca1..85275a5c 100644
--- a/virt-manager.changes
+++ b/virt-manager.changes
@@ -1,3 +1,10 @@
+-------------------------------------------------------------------
+Tue Jan 18 11:21:29 MST 2011 - carnold@novell.com
+
+- bnc#657272 - virt-manager creates default 'dir' storage pool in 
+  /var/lib/libvirt/images on xen host 
+  virtman-storage-pool.diff
+
 -------------------------------------------------------------------
 Fri Jan  7 16:31:05 MST 2011 - carnold@novell.com
 
diff --git a/virt-manager.spec b/virt-manager.spec
index b46f64a7..5f68a37d 100644
--- a/virt-manager.spec
+++ b/virt-manager.spec
@@ -1,5 +1,5 @@
 #
-# spec file for package virt-manager
+# spec file for package virt-manager (Version 0.8.5)
 #
 # Copyright (c) 2011 SUSE LINUX Products GmbH, Nuernberg, Germany.
 #
@@ -51,6 +51,7 @@ Patch58:        virtman-keycombo.diff
 Patch59:        virtman-autoconnect.diff
 Patch60:        virtman-device-flags.diff
 Patch61:        virtman-autorestart.diff
+Patch62:        virtman-storage-pool.diff
 Patch81:        virtinst-cdrom.diff
 Patch82:        virtinst-storage-ocfs2.diff
 ExclusiveArch:  %{ix86} x86_64
@@ -146,6 +147,7 @@ Authors:
 %patch59 -p1
 %patch60 -p1
 %patch61 -p1
+%patch62 -p1
 pushd $RPM_BUILD_DIR/%{virtinst_name}
 %patch81 -p1
 %patch82 -p1
diff --git a/virtman-storage-pool.diff b/virtman-storage-pool.diff
new file mode 100644
index 00000000..0e289641
--- /dev/null
+++ b/virtman-storage-pool.diff
@@ -0,0 +1,51 @@
+When connecting to a xen host, create default dir storage pool
+in /var/lib/xen/images instead of /var/lib/libvirt/images.
+
+Index: virt-manager-0.8.5/src/virtManager/connection.py
+===================================================================
+--- virt-manager-0.8.5.orig/src/virtManager/connection.py
++++ virt-manager-0.8.5/src/virtManager/connection.py
+@@ -1144,7 +1144,8 @@ class vmmConnection(gobject.GObject):
+             else:
+                 # Try to create the default storage pool
+                 try:
+-                    util.build_default_pool(self.vmm)
++                    util.build_default_pool(self.vmm, \
++                                       self.config.get_default_image_dir(self))
+                 except Exception, e:
+                     logging.debug("Building default pool failed: %s" % str(e))
+ 
+Index: virt-manager-0.8.5/src/virtManager/util.py
+===================================================================
+--- virt-manager-0.8.5.orig/src/virtManager/util.py
++++ virt-manager-0.8.5/src/virtManager/util.py
+@@ -31,9 +31,8 @@ import virtManager
+ import virtinst
+ 
+ DEFAULT_POOL_NAME = "default"
+-DEFAULT_POOL_PATH = "/var/lib/libvirt/images"
+ 
+-def build_default_pool(conn):
++def build_default_pool(conn, path):
+     """
+     Helper to build the 'default' storage pool
+     """
+@@ -54,15 +53,15 @@ def build_default_pool(conn):
+ 
+     try:
+         logging.debug("Attempting to build default pool with target '%s'" %
+-                      DEFAULT_POOL_PATH)
++                      path)
+         defpool = virtinst.Storage.DirectoryPool(conn=conn,
+                                                  name=DEFAULT_POOL_NAME,
+-                                                 target_path=DEFAULT_POOL_PATH)
++                                                 target_path=path)
+         newpool = defpool.install(build=True, create=True)
+         newpool.setAutostart(True)
+     except Exception, e:
+         raise RuntimeError(_("Couldn't create default storage pool '%s': %s") %
+-                             (DEFAULT_POOL_PATH, str(e)))
++                             (path, str(e)))
+ 
+ def get_ideal_path_info(conn, config, name):
+     path = get_default_dir(conn, config)