change Xen Configuration to:

disk = [ 'phy:hda2,hda1,w' ]
memory = 256
kernel = "/boot/vmlinuz-xen"
name = "xen-linux1"
root = "/dev/hda1 ro"


guest os /etc/fstab to:

/dev/hda1 / reiserfs acl,user_xattr 1 1