Additionally I figured out, that installing the version from the Quantal
Repo as Jeff suggested fixes the problem, so it seems to be a bug in
blktap-dkms.
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While setting up a new Xen box yesterday, I can totally reproduce the behaviour
reported by Eythor.
Xen doesnt boot from virtual CD drive with error code 0003 and dmesg is full of
blktap messages.
Anyone around who has seen this before or might know if this is related
to the latest blktap-dkms c