First, some empty disk space is needed. Let's create a logical volume for our new virtual machine:

root@xenserver1:~# lvcreate -n testlv -L 10G vg0
  Logical volume "testlv" created

Create a filesystem on the new logical volume:

root@xenserver1:~# mke2fs -j /dev/vg0/testlv
mke2fs 1.40-WIP (14-Nov-2006)
Filesystem label …