In order to install RHEL5.3 using virtio, you have to select Fedora 10 as the OS type
This falls in with the general need for more finegrained distro metadata (RHEL5 doesn't cut it when we may need to distinguish between 5.0, 5.1, etc.) Current upstream has a 'Generic Virtio' option which is better than selecting Fedora10 but not the correct fix.
Okay, --os-variant=virtio26 is good enough for this. Closing
*** Bug 537707 has been marked as a duplicate of this bug. ***
Even though it's a bit hokey to have a RHEL5 and a RHEL5.4+ option, we have someone working on a proper os dictionary and API which will expose much finer grained OS entries like RHEL5.0 RHEL5.1 RHEL5.2 etc. Since we will eventually have a specific 5.4 entry, I figured it doesn't hurt to do now (since it has been requested enough). So there is now a rhel5.4 entry upstream (and in rawhide, f12 updates-testing)