Trying to start the VM:

# xm create -c vm5
Using config file "/etc/xen/vm5".
Traceback (most recent call last):
  File "/usr/bin/pygrub", line 489, in ?
    g = Grub(file, isconfig)
  File "/usr/bin/pygrub", line 147, in __init__
    self.read_config(file, isconfig)
  File "/usr/bin/pygrub", line 326, in read_config
    fs = fstype.open_fs(fn, offset)
  File "/usr/lib/python/grub/fsys/ext2/__init__.py", line 35, in open_fs
    return Ext2Fs(fn, offset = offset)
ValueError: unable to open file
No handlers could be found for logger "xend"
Error: Boot loader didn't return any data!
Usage: xm create <ConfigFile> [options] [vars]