Now that I finally had some time to play with Xen I realized that THIS configuration works for me:
# Automtically generated by ConVirt
import os, re
arch = os.uname()[4]
if re.search('64', arch):
arch_libdir = 'lib64'
else:
arch_libdir = 'lib'
name='SME'
kernel='/usr/lib/xen/boot/hvmloader'
builder='hvm'
memory=256
shadow_memory=10
#vcpus=1 # number of vcpu's
#cpus = "0" # all vcpus run on CPU0
pae=0
acpi=0
apic=0
vif=['mac=00:16:3e:43:be:f7, bridge=xenbr0']
disk=['tap:aio:/xen-images/SME.disk.xm,hda,w', 'phy:/mnt/server/ISO/clonezilla-live-1.0.10-8.iso,hdc:cdrom,r']
device_model = '/usr/' + arch_libdir + '/xen/bin/qemu-dm'
# Boots from CDROM.
# Change to 'c' after Linux installation in order to boot from disk.
boot='d'
#boot='c'
sdl=0
vnc=1
vncunused=1
stdvga=0
extra=''
on_reboot='restart'
on_shutdown='destroy'
ramdisk=''
image_name='Linux_CD_Install'
on_crash='destroy'
bootloader=''
vcpus=1
root=''
image_conf='/root/convirt-0.8.2/log/image_store/Linux_CD_Install/Linux_CD_Install_SME_image.conf'
