This works much better than with Suse 10.0, but Yast2 is reworked in suse 10.1 and i have the feeling that in many areas yast2 in suse 10.1 is far not ready for production 
Here is the only way i found how to install a xen vm with suse 10.1!
Installation won't work well with CD/DVD. The best way i think is to put the Suse-CD's in a directory at the dom0. Example:
Repeat the copy with all CDs. Create numbered directories for each CD.
Edit /etc/exports and add
and start your nfs-server:
The dom0 (or installserver machine) has to have a static IP address. Otherwise the domU installation system will not be able to find the nfs server.
Using files as virtual disks does not work as soon as this bug is not fixed in 10.1. I recommend using LVM2. You need a empty partition (or some partitions). All data will be destroyed in this partition! For example you have a empty partition hdd8:
This converts the partition hdd8 to a "physical device" for LVM2, creates a "volume group" called xendisks with that device and finally cuts a 8GB piece to create a "logical volume" called dom1. We can now use the logical volume with the path /dev/xendisks/dom1 or /dev/mapper/xendisks-dom1.
If you hit "next", Yast will write the config of the vm (in /etc/xen/vm), create a empty pertition table on your lvm volume (so you can partition the volume - hard to imagine how your harddisk gets fragmented more and more
).
Then Yast will copy a suitable kernel from the install source to /tmp and start the vm with this kernel. A xterm should pop up and you'll be able to install a suse 10.1 on your vm using the textmode installer.
The installation will finish with a little crash of the installer. No idea why, but just ignore the error and choose to reboot the vm in the menu.
Yast will finalize the config - you usually have to tell it where the vm-rootfs is - in the view of the vm!
Now you can use the vm!
Here is the only way i found how to install a xen vm with suse 10.1!
Installation won't work well with CD/DVD. The best way i think is to put the Suse-CD's in a directory at the dom0. Example:
mkdir -p /linuxsrc/suse_10.1_x86/CD1 cp -a /media/SU*/* /linuxsrc/suse_10.1_x86/CD1
Repeat the copy with all CDs. Create numbered directories for each CD.
Edit /etc/exports and add
/linuxsrc *(ro)
and start your nfs-server:
/etc/init.d/nfsserver start
The dom0 (or installserver machine) has to have a static IP address. Otherwise the domU installation system will not be able to find the nfs server.
Using files as virtual disks does not work as soon as this bug is not fixed in 10.1. I recommend using LVM2. You need a empty partition (or some partitions). All data will be destroyed in this partition! For example you have a empty partition hdd8:
pvcreate /dev/hdd8 vgcreate xendisks /dev/hdd8 lvcreate -L 8G -n dom1 xendisks
This converts the partition hdd8 to a "physical device" for LVM2, creates a "volume group" called xendisks with that device and finally cuts a 8GB piece to create a "logical volume" called dom1. We can now use the logical volume with the path /dev/xendisks/dom1 or /dev/mapper/xendisks-dom1.
- Select System -> Virtual Machine Management (Xen).
- Select "Add", then "Run an OS installation program".
- On the next screen select "Disks" and delete the default entry.
- Add a new disk. Choose "Use Block Device" and use "hda" as virtual disk and /dev/xendisks/dom1 as Block Device.
- Ignore the warning and accept the disk.
- Back on "Installation Settings" select "Operating System Installation" and choose "Network Installation Source".
- Choose "Custom installation source" and type nfs://hostname_or_ip_of_dom0/linuxsrc/suse_10.1_x86/CD1 (see above about the CD-directory). Best is to use the IP of dom0.
- Finally set your Network settings (dhcp or static). The VM should have a IP in the same net as dom0. Otherwise you have to setup routing.
If you hit "next", Yast will write the config of the vm (in /etc/xen/vm), create a empty pertition table on your lvm volume (so you can partition the volume - hard to imagine how your harddisk gets fragmented more and more
).Then Yast will copy a suitable kernel from the install source to /tmp and start the vm with this kernel. A xterm should pop up and you'll be able to install a suse 10.1 on your vm using the textmode installer.
The installation will finish with a little crash of the installer. No idea why, but just ignore the error and choose to reboot the vm in the menu.
Yast will finalize the config - you usually have to tell it where the vm-rootfs is - in the view of the vm!
Now you can use the vm!