Thanks for your answer. I fixed problem by "fixing" initramfs scripts in dom0.
I modifed /usr/share/initramfs-tools/hooks/cryptroot to exit early before adding any resume / crypto devices. Now it works! (even with COMPRESS=lzma :D) It would be nice to have two versions of initrd (one for dom0 without this exit, and one for domU, will look at this) or eventually detect this at runtime based on /proc/cmdline for example or /proc/xen/capabilities. If one wants to use MODULES=dep instead of MODULES=most, to have smaller initrd, then additional step is needed (becuase dependency detection use dom0 devices and filesystems to detect which modules to load). I created new /usr/share/initramfs-tools/modules.d/xen with : # ext3 xenfs xen-evtchn xen-blkfront xen-netfront # ext3 is needed becuase my domO uses ext4 only, and it is not sufficient for domU (cannot mount root). It is not needed if one uses MODULES=most option in initramfs.conf as it will install most modules (also above ones). Works perfectly. Will try using pygrub now. -- Witold Baryluk
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