Setup bellow might seem strange unless you will become aware of some ongoing issues with VNC-Console behavior during virt-install running on the most recent OSOL builds 130 and 129.The first ones having xVM 3.4.2. Actually, it clearly demonstrates that RH's Xen PV Guest might be created and managed via virsh in graphical mode, regardless of VNC issues (at Dom0) affecting virt-install for particular OpenSolaris (b130,129) xVM 3.4.2 implementation.