On Tuesday 24 October 2006 13:57, John D. Baker wrote:
> [Error 2] No such file or directory: "/kern/xen/balloon"

That looks like a memory issue. I'm not sure if it is a misconfiguration or 
lacking support, but I have seen this error when trying to allocate memory 
that doesn't exist.

Check your dom0 min, mem and the allocation to domU. dom0 is 196 min default 
which may not help.

Sarton