After some more research and using the latest [..]-11 kernel I found out that 
the error is most likely due to excessive memory usage.
When running xen-create-image all my system memory gets used (> 1GB). When 
there is no more memory left the pdflush process starts to run, crashes and the 
kernel hangs.
I have tested xen-tools 3.7 and the error also exists in there. So it must be 
an ubuntu kernel problem.

** Tags added: memory-usage

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xen-image-create fails with kernel panic
https://bugs.launchpad.net/bugs/135041
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