This forces libxl to use Qemu when a raw image file is used as a disk backend. NetBSD currently only supports qemu-traditional, so device_model_version="qemu-xen-traditional" has to be added to the config file when using image files. Does this affect the situation with NetBSD dom0 domU's image in a regular (non-sparse file) PV domU ? I've been using that with good performance and near-perfect stability (as in crashes due to software seem to run about even with hardware issues). This is on a system with no qemu installed.
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