with kvm and virtio- would -m 1024 take proceedence over -balloon 
virtio? when i use both together, i see memory stay around 1024 MB less on my 
host side. I know the guest is not taking but a fraction of that ram, so I 
would expect the virtio balloon to take the majority of the guests ram and hand 
it back to the host. this is using the free util/command to take snapshots of 
the host memory. 

thanks,
-dman
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