Hi falko.. Thank you for your time on this.
/usr/sbin/grub-probe: error: cannot start `dev/xvda'.
Installation finished. No error reported
After this I reboot, and it does show the installed kernals (looking good so far)
Then.. When I select one I get the following error.
error: no such device: 23f86d60-263c-4a2b-b28d-dd4093a22677.
Loading Linux 2.6.32-5-686-bigmem ...
Loading initial ramdisk ...
After this the VM does do nothing anymore.. (looks like it's hanging)
So close... But still so far away :-(