Index: xen-3.0.5-testing/tools/python/xen/xend/XendDomainInfo.py
===================================================================
--- xen-3.0.5-testing.orig/tools/python/xen/xend/XendDomainInfo.py
+++ xen-3.0.5-testing/tools/python/xen/xend/XendDomainInfo.py
@@ -1440,10 +1440,10 @@ class XendDomainInfo:
                 raise VmError("HVM guest support is unavailable: is VT/AMD-V "
                               "supported by your CPU and enabled in your "
                               "BIOS?")
-            # Hack to pre-reserve some memory for HVM setup.
-            # Needed because Xen allocates 1MB by default immediately.
-            balloon.free(2*1024) # 2MB should be plenty
 
+        # The hypervisor needs some domheap pages to create the VM.
+        # Final ballooning for the domain's pages will be done later.
+        balloon.free(2 * 1024)
         self.domid = xc.domain_create(
             domid = 0,
             ssidref = security.get_security_info(self.info, 'ssidref'),