We are testing SLES 12 Xen and have run into a couple of issues. The first one seems silly, but it appears intentional. For some reason, Suse disabled the ability to create a supported paravirt domu from an ISO for a supported paravirt OS with virt-install. See: - 14 March 2014 in the change log notes:

- We are not supporting PV ISO installs with virt-install.
Drop the following patches

This seems to be a regression as the feature worked nicely in 11 SP3. I'm sure there were good technical reasons for this, however how can one create a PV xen domu without using a network install?