Index: virt-manager-1.0.0/virtManager/create.py
===================================================================
--- virt-manager-1.0.0.orig/virtManager/create.py
+++ virt-manager-1.0.0/virtManager/create.py
@@ -855,7 +855,12 @@ class vmmCreate(vmmGObjectUI):
             # If none specified, prefer HVM. This way, the default install
             # options won't be limited because we default to PV. If hvm not
             # supported, differ to guest_lookup
+            # If xen connection, favor PV installation
+            conn_is_xen = self.conn.is_xen()
             for g in self.caps.guests:
+                if conn_is_xen and g.os_type == "xen":
+                    gtype = "xen"
+                    break
                 if g.os_type == "hvm":
                     gtype = "hvm"
                     break