The default installer uses the 686 (non-PAE) kernel which I believe cannot run in a Xen PV domain. You're supposed to use the Xen netboot image to install a PV domain, e.g. from: <http://ftp.nl.debian.org/debian/dists/testing/main/installer-i386/current/images/netboot/xen/>
Given that you were able to boot the default installer anyway, it sounds like you are using a PVHVM domain rather than a PV domain. Is that correct? Perhaps it does makes sense to include the Xen PV drivers even in the 686 kernel and installation images, to support this. Ben. -- Ben Hutchings Absolutum obsoletum. (If it works, it's out of date.) - Stafford Beer
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