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I suspect this is that you're running the compute instance in an HVM guest rather than a PV guest. If you're running HVM then you must have the PV drivers installed in that guest, probably as well as the PV tools.

The only setup we have tested is with the Compute OS DomU as a PV guest; there may be other issues encountered if you use HVM.

I suspect this is that you're running the compute instance in an HVM guest rather than a PV guest. If you're running HVM then you must have the PV drivers installed in that guest, probably as well as the PV tools.

The During the automatic disk partitioning step the VHD must be mounted into the Compute OS DomU so we can run fdisk on it. This is only setup possible if the compute OS DomU has PV drivers installed. Running the tenant VMs as HVM or PV is a red herring, but we'd always recommend the PV drivers are installed in all VMs, HVM or not, as they will give the best performance.

Note that we have only tested is with the Compute OS DomU as a PV guest; there may be other issues encountered if you use HVM.