Index: virt-manager-0.9.5/src/virtManager/create.py
===================================================================
--- virt-manager-0.9.5.orig/src/virtManager/create.py
+++ virt-manager-0.9.5/src/virtManager/create.py
@@ -686,8 +686,13 @@ class vmmCreate(vmmGObjectUI):
                     default = len(model)
 
                 if gtype == "xen":
+                    pv_cdrom = False
+                    if self.guest and self.guest._lookup_osdict_key('pv_cdrom_install'):
+                        pv_cdrom = True
+
                     if (instmethod == INSTALL_PAGE_PXE or
-                        instmethod == INSTALL_PAGE_ISO):
+                        instmethod == INSTALL_PAGE_ISO and
+                        pv_cdrom == False):
                         sensitive = False
                         tooltip = _("Only URL or import installs are supported "
                                     "for paravirt.")
@@ -700,6 +705,7 @@ class vmmCreate(vmmGObjectUI):
             util.tooltip_wrapper(hv_info, tooltip)
         else:
             hv_info.hide()
+            default = 0
 
         hv_list.set_active(default)