Yes, membalooning is enabled right now:
<domain type='kvm'>
<name>deluge</name>
<uuid>de900b25-6dc3-cfd6-4fb1-55c6f9755b00</uuid>
<memory>524288</memory>
<currentMemory>524288</currentMemory>
<vcpu>1</vcpu>
<os>
<type arch='i686' machine='pc-0.14'>hvm</type>
<boot dev='hd'/>
</os>
<features>
<acpi/>
</features>
<clock offset='utc'/>
<on_poweroff>destroy</on_poweroff>
<on_reboot>restart</on_reboot>
<on_crash>destroy</on_crash>
<devices>
<emulator>/usr/bin/kvm</emulator>
<disk type='file' device='disk'>
<driver name='qemu' type='qcow2'/>
<source file='/var/lib/libvirt/images/deluge.qcow2'/>
<target dev='hda' bus='ide'/>
<address type='drive' controller='0' bus='0' unit='0'/>
</disk>
<controller type='ide' index='0'>
<address type='pci' domain='0x0000' bus='0x00' slot='0x01'
function='0x1'/>
</controller>
<interface type='network'>
<mac address='52:54:00:3b:08:03'/>
<source network='default'/>
<address type='pci' domain='0x0000' bus='0x00' slot='0x05'
function='0x0'/>
</interface>
<serial type='pty'>
<target port='0'/>
</serial>
<console type='pty'>
<target type='serial' port='0'/>
</console>
<input type='mouse' bus='ps2'/>
<graphics type='vnc' port='-1' autoport='yes' listen='127.0.0.1'/>
<video>
<model type='cirrus' vram='9216' heads='1'/>
<address type='pci' domain='0x0000' bus='0x00' slot='0x02'
function='0x0'/>
</video>
<memballoon model='virtio'>
<address type='pci' domain='0x0000' bus='0x00' slot='0x04'
function='0x0'/>
</memballoon>
</devices>
</domain>
and network:
<network>
<name>default</name>
<uuid>19ff9987-5265-ac1c-4ae2-eda8e280afa4</uuid>
<forward mode='nat'/>
<bridge name='virbr0' stp='on' delay='0' />
<ip address='192.168.122.1' netmask='255.255.255.0'>
<dhcp>
<range start='192.168.122.2' end='192.168.122.254' />
</dhcp>
</ip>
</network>
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https://bugs.launchpad.net/bugs/776936
Title:
Running KVM guest causes kernel panic on host
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