diff --git a/appvm/qubes_core b/appvm/qubes_core
index 6e689bb6..06054b5e 100755
--- a/appvm/qubes_core
+++ b/appvm/qubes_core
@@ -35,13 +35,8 @@ start()
 			(read a b c d ; xenstore-write device/qubes_used_mem $c)
 		# we're still running in DispVM template
 		echo "Waiting for save/restore..."
-		# WARNING: Nergalism!
-		# Apparently it has been determined that DomU kernel
-		# dmesg's "using vcpu" after restore
-		while ! dmesg -c | grep "using vcpu" ; do usleep 10 ; done
-		# we're now after restore in a new instance of a DispVM
 		# ... wait until qubes_restore.c (in Dom0) recreates VM-specific keys
-		while ! xenstore-read qubes_vm_type 2>/dev/null ; do 
+		while ! xenstore-read qubes_restore_complete 2>/dev/null ; do 
 			usleep 10
 		done
 		echo Back to life.
@@ -87,6 +82,10 @@ start()
         fi
 	fi
 
+	MEM_CHANGE_THRESHOLD_KB=30000
+	MEMINFO_DELAY_USEC=100000
+	/usr/lib/qubes/meminfo-writer $MEM_CHANGE_THRESHOLD_KB $MEMINFO_DELAY_USEC &
+
 	[ -x /rw/config/rc.local ] && /rw/config/rc.local
 	success
 	echo ""
diff --git a/common/Makefile b/common/Makefile
new file mode 100644
index 00000000..85888a90
--- /dev/null
+++ b/common/Makefile
@@ -0,0 +1,7 @@
+CC=gcc
+CFLAGS=-Wall -g -O3
+all:	meminfo-writer
+meminfo-writer: meminfo-writer.o
+	$(CC) -g -o meminfo-writer meminfo-writer.o -lxenstore
+clean:
+	rm -f meminfo-writer *.o *~
diff --git a/common/meminfo-writer.c b/common/meminfo-writer.c
new file mode 100644
index 00000000..49c8b6a5
--- /dev/null
+++ b/common/meminfo-writer.c
@@ -0,0 +1,121 @@
+#include <fcntl.h>
+#include <unistd.h>
+#include <stdio.h>
+#include <stdlib.h>
+#include <xs.h>
+#include <syslog.h>
+#include <string.h>
+
+unsigned long prev_used_mem;
+int used_mem_change_threshold;
+int delay;
+
+char *parse(char *buf)
+{
+	char *ptr = buf;
+	char name[256];
+	static char outbuf[4096];
+	int val;
+	int len;
+	int MemTotal = 0, MemFree = 0, Buffers = 0, Cached = 0, SwapTotal =
+	    0, SwapFree = 0;
+	unsigned long long key;
+	long used_mem, used_mem_diff;
+	int nitems = 0;
+
+	while (nitems != 6) {
+		sscanf(ptr, "%s %d kB\n%n", name, &val, &len);
+		key = *(unsigned long long *) ptr;
+		if (key == *(unsigned long long *) "MemTotal:") {
+			MemTotal = val;
+			nitems++;
+		} else if (key == *(unsigned long long *) "MemFree:") {
+			MemFree = val;
+			nitems++;
+		} else if (key == *(unsigned long long *) "Buffers:") {
+			Buffers = val;
+			nitems++;
+		} else if (key == *(unsigned long long *) "Cached:  ") {
+			Cached = val;
+			nitems++;
+		} else if (key == *(unsigned long long *) "SwapTotal:") {
+			SwapTotal = val;
+			nitems++;
+		} else if (key == *(unsigned long long *) "SwapFree:") {
+			SwapFree = val;
+			nitems++;
+		}
+
+		ptr += len;
+	}
+
+	used_mem =
+	    MemTotal - Buffers - Cached - MemFree + SwapTotal - SwapFree;
+	if (used_mem < 0)
+		return NULL;
+
+	used_mem_diff = used_mem - prev_used_mem;
+	if (used_mem_diff < 0)
+		used_mem_diff = -used_mem_diff;
+	if (used_mem_diff > used_mem_change_threshold
+	    || (used_mem > prev_used_mem && used_mem * 13 / 10 > MemTotal
+		&& used_mem_diff > used_mem_change_threshold/2)) {
+		prev_used_mem = used_mem;
+		sprintf(outbuf,
+			"MemTotal: %d kB\nMemFree: %d kB\nBuffers: %d kB\nCached: %d kB\n"
+			"SwapTotal: %d kB\nSwapFree: %d kB\n", MemTotal,
+			MemFree, Buffers, Cached, SwapTotal, SwapFree);
+		return outbuf;
+	}
+	return NULL;
+}
+
+void usage()
+{
+	fprintf(stderr,
+		"usage: meminfo_writer threshold_in_kb delay_in_us\n");
+	exit(1);
+}
+
+void send_to_qmemman(struct xs_handle *xs, char *data)
+{
+	if (!xs_write(xs, XBT_NULL, "memory/meminfo", data, strlen(data))) {
+		syslog(LOG_DAEMON | LOG_ERR, "error writing xenstore ?");
+		exit(1);
+	}
+}
+
+int main(int argc, char **argv)
+{
+	char buf[4096];
+	int n;
+	char *meminfo_data;
+	int fd;
+	struct xs_handle *xs;
+
+	if (argc != 3)
+		usage();
+	used_mem_change_threshold = atoi(argv[1]);
+	delay = atoi(argv[2]);
+	if (!used_mem_change_threshold || !delay)
+		usage();
+
+	fd = open("/proc/meminfo", O_RDONLY);
+	if (fd < 0) {
+		perror("open meminfo");
+		exit(1);
+	}
+	xs = xs_domain_open();
+	if (!xs) {
+		perror("xs_domain_open");
+		exit(1);
+	}
+	for (;;) {
+		n = pread(fd, buf, sizeof(buf), 0);
+		buf[n] = 0;
+		meminfo_data = parse(buf);
+		if (meminfo_data)
+			send_to_qmemman(xs, meminfo_data);
+		usleep(delay);
+	}
+}
diff --git a/dom0/init.d/qubes_core b/dom0/init.d/qubes_core
index 61452d76..90f7cad7 100755
--- a/dom0/init.d/qubes_core
+++ b/dom0/init.d/qubes_core
@@ -56,6 +56,12 @@ start()
     xm mem-set 0 1600
     cp /var/lib/qubes/qubes.xml /var/lib/qubes/backup/qubes-$(date +%F-%T).xml
     setup_dvm_files
+    /usr/lib/qubes/qmemman_daemon.py >/var/log/qubes/qmemman.log 2>/var/log/qubes/qmemman.errs & 
+
+    MEM_CHANGE_THRESHOLD_KB=30000
+    MEMINFO_DELAY_USEC=100000
+    /usr/lib/qubes/meminfo-writer $MEM_CHANGE_THRESHOLD_KB $MEMINFO_DELAY_USEC &
+
     touch /var/lock/subsys/qubes_core
     success
     echo
diff --git a/dom0/pendrive_swapper/qfilexchgd b/dom0/pendrive_swapper/qfilexchgd
index f08a235b..3773d0d2 100755
--- a/dom0/pendrive_swapper/qfilexchgd
+++ b/dom0/pendrive_swapper/qfilexchgd
@@ -30,6 +30,7 @@ import time
 from qubes.qubes import QubesVmCollection
 from qubes.qubes import QubesException
 from qubes.qubes import QubesDaemonPidfile
+from qubes.qmemman_client import QMemmanClient
 
 filename_seq = 50
 pen_cmd = '/usr/lib/qubes/qubes_pencmd'
@@ -187,13 +188,11 @@ class DomainState:
 
     def handle_transfer_disposable(self, transaction_seq):
 
-        mem_for_dvm = 400
-        xenfreepages_s = subprocess.Popen(["/usr/lib/qubes/xenfreepages"],stdout=subprocess.PIPE).stdout.readline()
-        xenfree_mb = int(xenfreepages_s)*4096/1024/1024
-        if xenfree_mb < mem_for_dvm:
-            errmsg = 'Not enough memory to create DVM: '
-            errmsg +='have ' + str(xenfree_mb) + 'MB, need '
-            errmsg +=str(mem_for_dvm) + 'MB. Terminate some appVM and retry.'
+        qmemman_client = QMemmanClient()
+        if not qmemman_client.request_memory(400*1024*1024):
+            qmemman_client.close()
+            errmsg = 'Not enough memory to create DVM. '
+            errmsg +='Terminate some appVM and retry.'
             subprocess.call(['/usr/bin/kdialog', '--sorry', errmsg])
             return False
 
@@ -205,12 +204,14 @@ class DomainState:
         if vm is None:
             logproc( 'Domain ' + vmname + ' does not exist ?')
             qvm_collection.unlock_db()
+            qmemman_client.close()
             return False
         retcode = subprocess.call(['/usr/lib/qubes/qubes_restore',
             current_savefile,
             '-c', vm.label.color,
             '-i', vm.label.icon,
             '-l', str(vm.label.index)])
+        qmemman_client.close()
         if retcode != 0:
             subprocess.call(['/usr/bin/kdialog', '--sorry', 'DisposableVM creation failed, see qubes_restore.log'])
             qvm_collection.unlock_db()
diff --git a/dom0/qmemman/qmemman.py b/dom0/qmemman/qmemman.py
new file mode 100755
index 00000000..cbfc0543
--- /dev/null
+++ b/dom0/qmemman/qmemman.py
@@ -0,0 +1,140 @@
+import xen.lowlevel.xc
+import xen.lowlevel.xs
+import string
+import time
+import qmemman_algo
+import os
+
+class DomainState:
+    def __init__(self, id):
+        self.meminfo = None
+        self.memory_actual = None
+        self.mem_used = None
+        self.id = id
+        self.last_target = 0
+
+class SystemState:
+    def __init__(self):
+        self.domdict = {}
+        self.xc = xen.lowlevel.xc.xc()
+        self.xs = xen.lowlevel.xs.xs()
+        self.BALOON_DELAY = 0.1
+
+    def add_domain(self, id):
+        self.domdict[id] = DomainState(id)
+
+    def del_domain(self, id):
+        self.domdict.pop(id)
+
+    def get_free_xen_memory(self):
+        return self.xc.physinfo()['free_memory']*1024
+#        hosts = self.xend_session.session.xenapi.host.get_all()
+#        host_record = self.xend_session.session.xenapi.host.get_record(hosts[0])
+#        host_metrics_record = self.xend_session.session.xenapi.host_metrics.get_record(host_record["metrics"])
+#        ret = host_metrics_record["memory_free"]
+#        return long(ret)
+
+    def refresh_memactual(self):
+        for domain in self.xc.domain_getinfo():
+            id = str(domain['domid'])
+            if self.domdict.has_key(id):
+                self.domdict[id].memory_actual = domain['mem_kb']*1024
+
+#the below works (and is fast), but then 'xm list' shows unchanged memory value
+    def mem_set(self, id, val):
+        print 'mem-set domain', id, 'to', val
+        self.domdict[id].last_target = val
+        self.xs.write('', '/local/domain/' + id + '/memory/target', str(val/1024))
+#can happen in the middle of domain shutdown
+#apparently xc.lowlevel throws exceptions too
+        try:
+            self.xc.domain_set_target_mem(int(id), val/1024)
+        except:
+            pass
+    
+    def mem_set_obsolete(self, id, val):
+        uuid = self.domdict[id].uuid
+        if val >= 2**31:
+            print 'limiting memory from ', val, 'to maxint because of xml-rpc lameness'
+            val = 2**31 - 1
+        print 'mem-set domain', id, 'to', val
+        try:
+            self.xend_session.session.xenapi.VM.set_memory_dynamic_max_live(uuid, val)
+            self.xend_session.session.xenapi.VM.set_memory_dynamic_min_live(uuid, val)
+#can happen in the middle of domain shutdown
+        except XenAPI.Failure:
+            pass
+
+    def do_balloon(self, memsize):
+        MAX_TRIES = 20
+        niter = 0
+        prev_memory_actual = None
+        for i in self.domdict.keys():
+            self.domdict[i].no_progress = False
+        while True:
+            xenfree = self.get_free_xen_memory()
+            print 'got xenfree=', xenfree
+            if xenfree >= memsize:
+                return True
+            self.refresh_memactual()
+            if prev_memory_actual is not None:
+                for i in prev_memory_actual.keys():
+                    if prev_memory_actual[i] == self.domdict[i].memory_actual:
+                        self.domdict[i].no_progress = True
+                        print 'domain', i, 'stuck at', self.domdict[i].memory_actual
+            memset_reqs = qmemman_algo.balloon(memsize-xenfree, self.domdict)
+            print 'requests:', memset_reqs
+            if niter > MAX_TRIES or len(memset_reqs) == 0:
+                return False
+            prev_memory_actual = {}
+            for i in memset_reqs:
+                dom, mem = i
+                self.mem_set(dom, mem)
+                prev_memory_actual[dom] = self.domdict[dom].memory_actual
+            time.sleep(self.BALOON_DELAY)
+            niter = niter + 1
+            
+    def refresh_meminfo(self, domid, val):
+        qmemman_algo.refresh_meminfo_for_domain(self.domdict[domid], val)
+        self.do_balance()
+
+    def is_balance_req_significant(self, memset_reqs):
+        total_memory_transfer = 0
+        MIN_TOTAL_MEMORY_TRANSFER = 150*1024*1024
+        MIN_MEM_CHANGE_WHEN_UNDER_PREF = 15*1024*1024
+        for rq in memset_reqs:
+            dom, mem = rq
+            last_target = self.domdict[dom].last_target
+            memory_change = mem - last_target
+            total_memory_transfer += abs(memory_change)
+            pref = qmemman_algo.prefmem(self.domdict[dom])
+            if last_target > 0 and last_target < pref and memory_change > MIN_MEM_CHANGE_WHEN_UNDER_PREF:
+                print 'dom', dom, 'is below pref, allowing balance'
+                return True
+        return total_memory_transfer > MIN_TOTAL_MEMORY_TRANSFER
+
+    def print_stats(self, xenfree, memset_reqs):
+        for i in self.domdict.keys():
+            if self.domdict[i].meminfo is not None:
+                print 'dom' , i, 'act/pref', self.domdict[i].memory_actual, qmemman_algo.prefmem(self.domdict[i])
+        print 'xenfree=', xenfree, 'balance req:', memset_reqs
+                                                
+    def do_balance(self):
+        if os.path.isfile('/var/run/qubes/do-not-membalance'):
+            return
+        self.refresh_memactual()
+        xenfree = self.get_free_xen_memory()
+        memset_reqs = qmemman_algo.balance(xenfree, self.domdict)
+        if not self.is_balance_req_significant(memset_reqs):
+            return
+            
+        self.print_stats(xenfree, memset_reqs)
+
+        for rq in memset_reqs:
+            dom, mem = rq
+            self.mem_set(dom, mem)
+
+#        for i in self.domdict.keys():
+#            print 'domain ', i, ' meminfo=', self.domdict[i].meminfo, 'actual mem', self.domdict[i].memory_actual
+#            print 'domain ', i, 'actual mem', self.domdict[i].memory_actual
+#        print 'xen free mem', self.get_free_xen_memory()
diff --git a/dom0/qmemman/qmemman_algo.py b/dom0/qmemman/qmemman_algo.py
new file mode 100755
index 00000000..06037206
--- /dev/null
+++ b/dom0/qmemman/qmemman_algo.py
@@ -0,0 +1,153 @@
+import string
+
+def parse_meminfo(meminfo):
+    dict = {}
+    l1 = string.split(meminfo,"\n")
+    for i in l1:
+        l2 = string.split(i)
+        if len(l2) >= 2:
+            dict[string.rstrip(l2[0], ":")] = l2[1]
+
+    try:
+        for i in ('MemTotal', 'MemFree', 'Buffers', 'Cached', 'SwapTotal', 'SwapFree'):
+            val = int(dict[i])*1024
+            if (val < 0):
+                return None
+            dict[i] = val
+    except:
+        return None
+
+    if dict['SwapTotal'] < dict['SwapFree']:
+        return None
+    return dict
+
+def is_suspicious(dom):
+    ret = False
+    if dom.meminfo['SwapTotal'] < dom.meminfo['SwapFree']:
+        ret = True
+    if dom.meminfo['MemTotal'] < dom.meminfo['MemFree'] + dom.meminfo['Cached'] + dom.meminfo['Buffers']:
+        ret = True
+    if ret:
+        print 'suspicious meminfo for domain', dom.id, 'mem actual', dom.memory_actual, dom.meminfo
+    return ret
+
+def refresh_meminfo_for_domain(dom, xenstore_key):
+    meminfo = parse_meminfo(xenstore_key)
+    dom.meminfo = meminfo
+    if meminfo is None:
+        return
+    if is_suspicious(dom):
+        dom.meminfo = None
+        dom.mem_used = None
+    else:
+        dom.mem_used =  dom.meminfo['MemTotal'] - dom.meminfo['MemFree'] - dom.meminfo['Cached'] - dom.meminfo['Buffers'] + dom.meminfo['SwapTotal'] - dom.meminfo['SwapFree']
+                        
+def prefmem(dom):
+    CACHE_FACTOR = 1.3
+#dom0 is special, as it must have large cache, for vbds. Thus, give it a special boost
+    if dom.id == '0':
+        return dom.mem_used*CACHE_FACTOR + 350*1024*1024
+    return dom.mem_used*CACHE_FACTOR
+
+def memneeded(dom):
+#do not change
+#in balance(), "distribute totalsum proportionally to mempref" relies on this exact formula
+    ret = prefmem(dom) - dom.memory_actual
+    return ret
+    
+    
+def balloon(memsize, domdict):
+    REQ_SAFETY_NET_FACTOR = 1.05
+    donors = list()
+    request = list()
+    available = 0
+    for i in domdict.keys():
+        if domdict[i].meminfo is None:
+            continue
+        if domdict[i].no_progress:
+            continue
+        need = memneeded(domdict[i])
+        if need < 0:
+            print 'balloon: dom' , i, 'has actual memory', domdict[i].memory_actual
+            donors.append((i,-need))
+            available-=need   
+    print 'req=', memsize, 'avail=', available, 'donors', donors
+    if available<memsize:
+        return ()
+    scale = 1.0*memsize/available
+    for donors_iter in donors:
+        id, mem = donors_iter
+        memborrowed = mem*scale*REQ_SAFETY_NET_FACTOR
+        print 'borrow' , memborrowed, 'from', id
+        memtarget = int(domdict[id].memory_actual - memborrowed)
+        request.append((id, memtarget))
+    return request
+# REQ_SAFETY_NET_FACTOR is a bit greater that 1. So that if the domain yields a bit less than requested, due
+# to e.g. rounding errors, we will not get stuck. The surplus will return to the VM during "balance" call.
+
+
+#redistribute positive "totalsum" of memory between domains, proportionally to prefmem
+def balance_when_enough_memory(domdict, xenfree, total_mem_pref, totalsum):
+    donors_rq = list()
+    acceptors_rq = list()
+    for i in domdict.keys():
+        if domdict[i].meminfo is None:
+            continue
+#distribute totalsum proportionally to mempref
+        scale = 1.0*prefmem(domdict[i])/total_mem_pref
+        target_nonint = prefmem(domdict[i]) + scale*totalsum
+#prevent rounding errors
+        target = int(0.995*target_nonint)
+        if (target < domdict[i].memory_actual):
+            donors_rq.append((i, target))
+        else:
+            acceptors_rq.append((i, target))
+#    print 'balance(enough): xenfree=', xenfree, 'requests:', donors_rq + acceptors_rq
+    return donors_rq + acceptors_rq
+
+#when not enough mem to make everyone be above prefmem, make donors be at prefmem, and 
+#redistribute anything left between acceptors
+def balance_when_low_on_memory(domdict, xenfree, total_mem_pref_acceptors, donors, acceptors):
+    donors_rq = list()
+    acceptors_rq = list()
+    squeezed_mem = xenfree
+    for i in donors:
+        avail = -memneeded(domdict[i])
+        if avail < 10*1024*1024:
+            #probably we have already tried making it exactly at prefmem, give up
+            continue
+        squeezed_mem -= avail
+        donors_rq.append((i, prefmem(domdict[i])))
+    for i in acceptors:
+        scale = 1.0*prefmem(domdict[i])/total_mem_pref_acceptors
+        target_nonint = domdict[i].memory_actual + scale*squeezed_mem
+        acceptors_rq.append((i, int(target_nonint)))       
+#    print 'balance(low): xenfree=', xenfree, 'requests:', donors_rq + acceptors_rq
+    return donors_rq + acceptors_rq
+ 
+def balance(xenfree, domdict):
+    total_memneeded = 0
+    total_mem_pref = 0
+    total_mem_pref_acceptors = 0
+    
+    donors = list()
+    acceptors = list()
+#pass 1: compute the above "total" values
+    for i in domdict.keys():
+        if domdict[i].meminfo is None:
+            continue
+        need = memneeded(domdict[i])
+#        print 'domain' , i, 'act/pref', domdict[i].memory_actual, prefmem(domdict[i]), 'need=', need
+        if need < 0:
+            donors.append(i)
+        else:
+            acceptors.append(i)
+            total_mem_pref_acceptors += prefmem(domdict[i])
+        total_memneeded += need
+        total_mem_pref += prefmem(domdict[i])
+
+    totalsum = xenfree - total_memneeded  
+    if totalsum > 0:
+        return balance_when_enough_memory(domdict, xenfree, total_mem_pref, totalsum)
+    else:
+        return balance_when_low_on_memory(domdict, xenfree, total_mem_pref_acceptors, donors, acceptors)
diff --git a/dom0/qmemman/qmemman_client.py b/dom0/qmemman/qmemman_client.py
new file mode 100755
index 00000000..e1d5234c
--- /dev/null
+++ b/dom0/qmemman/qmemman_client.py
@@ -0,0 +1,21 @@
+import socket
+import fcntl
+class QMemmanClient:
+
+    def request_memory(self, amount):
+        self.sock = socket.socket(socket.AF_UNIX)
+
+        flags = fcntl.fcntl(self.sock.fileno(), fcntl.F_GETFD)
+        flags |= fcntl.FD_CLOEXEC
+        fcntl.fcntl(self.sock.fileno(), fcntl.F_SETFD, flags)
+
+        self.sock.connect("/var/run/qubes/qmemman.sock")
+        self.sock.send(str(amount)+"\n")
+        self.received = self.sock.recv(1024).strip()
+        if self.received == 'OK':
+            return True
+        else:
+            return False
+
+    def close(self):
+        self.sock.close()
diff --git a/dom0/qmemman/qmemman_server.py b/dom0/qmemman/qmemman_server.py
new file mode 100755
index 00000000..52e35664
--- /dev/null
+++ b/dom0/qmemman/qmemman_server.py
@@ -0,0 +1,113 @@
+#!/usr/bin/python
+import SocketServer
+import thread
+import time
+import xen.lowlevel.xs
+import sys
+import os
+from qmemman import SystemState
+
+system_state = SystemState()
+global_lock = thread.allocate_lock()
+
+def only_in_first_list(l1, l2):
+    ret=[]
+    for i in l1:
+        if not i in l2:
+            ret.append(i)
+    return ret
+
+def get_req_node(domain_id):
+    return '/local/domain/'+domain_id+'/memory/meminfo'
+
+                    
+class WatchType:
+    def __init__(self, fn, param):
+        self.fn = fn
+        self.param = param
+
+class XS_Watcher:
+    def __init__(self):
+        self.handle = xen.lowlevel.xs.xs()
+        self.handle.watch('/vm', WatchType(XS_Watcher.dom_list_change, None))
+        self.watch_token_dict = {}
+
+    def dom_list_change(self, param):
+        curr = self.handle.ls('', '/local/domain')
+        if curr == None:
+            return
+        global_lock.acquire()
+        for i in only_in_first_list(curr, self.watch_token_dict.keys()):
+            watch = WatchType(XS_Watcher.request, i)
+            self.watch_token_dict[i] = watch
+            self.handle.watch(get_req_node(i), watch)
+            system_state.add_domain(i)
+        for i in only_in_first_list(self.watch_token_dict.keys(), curr):
+            self.handle.unwatch(get_req_node(i), self.watch_token_dict[i])
+            self.watch_token_dict.pop(i)
+            system_state.del_domain(i)
+        global_lock.release()
+
+    def request(self, domain_id):
+        ret = self.handle.read('', get_req_node(domain_id))
+        if ret == None or ret == '':
+            return
+        global_lock.acquire()
+        system_state.refresh_meminfo(domain_id, ret)
+        global_lock.release()
+
+    def watch_loop(self):
+#        sys.stderr = file('/var/log/qubes/qfileexchgd.errors', 'a')
+        while True:
+            result = self.handle.read_watch()
+            token = result[1]
+            token.fn(self, token.param)
+
+
+class QMemmanReqHandler(SocketServer.BaseRequestHandler):
+    """
+    The RequestHandler class for our server.
+
+    It is instantiated once per connection to the server, and must
+    override the handle() method to implement communication to the
+    client.
+    """
+
+    def handle(self):
+        got_lock = False
+        # self.request is the TCP socket connected to the client
+        while True:
+            self.data = self.request.recv(1024).strip()
+            if len(self.data) == 0:
+                print 'EOF'
+                if got_lock:
+                    global_lock.release()
+                return
+            if got_lock:
+                print 'Second request over qmemman.sock ?'
+                return
+            global_lock.acquire()
+            got_lock = True
+            if system_state.do_balloon(int(self.data)):
+                resp = "OK\n"
+            else:
+                resp = "FAIL\n"
+            self.request.send(resp)
+
+
+def start_server():
+    SOCK_PATH='/var/run/qubes/qmemman.sock'
+    try:
+        os.unlink(SOCK_PATH)
+    except:
+        pass
+    os.umask(0)
+    server = SocketServer.UnixStreamServer(SOCK_PATH, QMemmanReqHandler)
+    os.umask(077)
+    server.serve_forever()
+
+class QMemmanServer:
+    @staticmethod          
+    def main():
+        thread.start_new_thread(start_server, tuple([]))
+        XS_Watcher().watch_loop()
diff --git a/dom0/qmemman/server.py b/dom0/qmemman/server.py
new file mode 100755
index 00000000..8a39eb5d
--- /dev/null
+++ b/dom0/qmemman/server.py
@@ -0,0 +1,4 @@
+#!/usr/bin/python
+from qubes.qmemman_server import QMemmanServer
+
+QMemmanServer.main()
diff --git a/dom0/qvm-core/qubes.py b/dom0/qvm-core/qubes.py
index 1f8c5929..fefc8feb 100755
--- a/dom0/qvm-core/qubes.py
+++ b/dom0/qvm-core/qubes.py
@@ -29,6 +29,7 @@ import xml.parsers.expat
 import fcntl
 import re
 import shutil
+from qmemman_client import QMemmanClient
 
 # Do not use XenAPI or create/read any VM files
 # This is for testing only!
@@ -326,6 +327,18 @@ class QubesVm(object):
 
         return mem
 
+    def get_mem_dynamic_max(self):
+        if dry_run:
+            return 666
+
+        try:
+            mem = int(xend_session.session.xenapi.VM.get_memory_dynamic_max(self.session_uuid))
+        except XenAPI.Failure:
+            self.refresh_xend_session()
+            mem = int(xend_session.session.xenapi.VM.get_memory_dynamic_max(self.session_uuid))
+
+        return mem
+
 
     def get_cpu_total_load(self):
         if dry_run:
@@ -474,15 +487,11 @@ class QubesVm(object):
         if verbose:
             print "--> Loading the VM (type = {0})...".format(self.type)
 
-        mem_required = self.get_mem_static_max()
-        dom0_mem = dom0_vm.get_mem()
-        dom0_mem_new = dom0_mem - mem_required + self.get_free_xen_memory()
-        if verbose:
-            print "--> AppVM required mem     : {0}".format(mem_required)
-            print "--> Dom0 mem after launch  : {0}".format(dom0_mem_new)
-
-        if dom0_mem_new < dom0_min_memory:
-            raise MemoryError ("ERROR: starting this VM would cause Dom0 memory to go below {0}B".format(dom0_min_memory))
+        mem_required = self.get_mem_dynamic_max()
+        qmemman_client = QMemmanClient()
+        if not qmemman_client.request_memory(mem_required):
+            qmemman_client.close()
+            raise MemoryError ("ERROR: insufficient memory to start this VM")
 
         try:
             xend_session.session.xenapi.VM.start (self.session_uuid, True) # Starting a VM paused
@@ -490,6 +499,8 @@ class QubesVm(object):
             self.refresh_xend_session()
             xend_session.session.xenapi.VM.start (self.session_uuid, True) # Starting a VM paused
 
+        qmemman_client.close() # let qmemman_daemon resume balancing
+        
         xid = int (xend_session.session.xenapi.VM.get_domid (self.session_uuid))
 
         if verbose:
diff --git a/dom0/restore/qubes_prepare_saved_domain.sh b/dom0/restore/qubes_prepare_saved_domain.sh
index 53a7af52..54668319 100755
--- a/dom0/restore/qubes_prepare_saved_domain.sh
+++ b/dom0/restore/qubes_prepare_saved_domain.sh
@@ -48,10 +48,16 @@ xenstore-read /local/domain/$ID/qubes_gateway | \
 xm block-detach $1 /dev/xvdb
 MEM=$(xenstore-read /local/domain/$ID/device/qubes_used_mem)
 echo MEM=$MEM
+QMEMMAN_STOP=/var/run/qubes/do-not-membalance
+touch $QMEMMAN_STOP
 xm mem-set $1 $(($MEM/1000))
 sleep 1
 touch $2
-if ! xm save $1 $2 ; then exit 1 ; fi
+if ! xm save $1 $2 ; then 
+	rm -f $QMEMMAN_STOP
+	exit 1
+fi
+rm -f $QMEMMAN_STOP
 cd $VMDIR
 tar -Scvf saved_cows.tar root-cow.img swap-cow.img
 
diff --git a/dom0/restore/qubes_restore.c b/dom0/restore/qubes_restore.c
index 5f43ef41..a38aa1fe 100644
--- a/dom0/restore/qubes_restore.c
+++ b/dom0/restore/qubes_restore.c
@@ -359,6 +359,7 @@ void setup_xenstore(int netvm_id, int domid, int dvmid, char *name)
 	snprintf(val, sizeof(val), "10.%d.255.254", netvm_id);
 	write_xs_single(xs, domid, "qubes_secondary_dns", val);
 	write_xs_single(xs, domid, "qubes_vm_type", "AppVM");
+	write_xs_single(xs, domid, "qubes_restore_complete", "True");
 	xs_daemon_close(xs);
 
 }
diff --git a/rpm_spec/core-appvm.spec b/rpm_spec/core-appvm.spec
index a4444f0b..7974e23d 100644
--- a/rpm_spec/core-appvm.spec
+++ b/rpm_spec/core-appvm.spec
@@ -52,6 +52,7 @@ fi
 
 %build
 make clean all
+make -C ../common
 
 %install
 
@@ -65,6 +66,7 @@ cp qubes_timestamp qvm-copy-to-vm qvm-open-in-dvm $RPM_BUILD_ROOT/usr/bin
 mkdir -p $RPM_BUILD_ROOT/usr/lib/qubes
 cp qubes_add_pendrive_script qubes_penctl qvm-copy-to-vm.kde $RPM_BUILD_ROOT/usr/lib/qubes
 ln -s /usr/bin/qvm-open-in-dvm $RPM_BUILD_ROOT/usr/lib/qubes/qvm-dvm-transfer 
+cp ../common/meminfo-writer $RPM_BUILD_ROOT/usr/lib/qubes
 mkdir -p $RPM_BUILD_ROOT/%{kde_service_dir}
 cp qvm-copy.desktop qvm-dvm.desktop $RPM_BUILD_ROOT/%{kde_service_dir}
 mkdir -p $RPM_BUILD_ROOT/etc/udev/rules.d
@@ -187,6 +189,7 @@ rm -rf $RPM_BUILD_ROOT
 /usr/lib/qubes/qvm-copy-to-vm.kde
 %attr(4755,root,root) /usr/bin/qvm-open-in-dvm
 /usr/lib/qubes/qvm-dvm-transfer
+/usr/lib/qubes/meminfo-writer
 %{kde_service_dir}/qvm-copy.desktop
 %{kde_service_dir}/qvm-dvm.desktop
 %attr(4755,root,root) /usr/lib/qubes/qubes_penctl
diff --git a/rpm_spec/core-dom0.spec b/rpm_spec/core-dom0.spec
index 80e7d3d7..bcedbf4e 100644
--- a/rpm_spec/core-dom0.spec
+++ b/rpm_spec/core-dom0.spec
@@ -44,9 +44,10 @@ Requires:	python, xen-runtime, pciutils, python-inotify, python-daemon, kernel-q
 The Qubes core files for installation on Dom0.
 
 %build
-python -m compileall qvm-core
-python -O -m compileall qvm-core
+python -m compileall qvm-core qmemman
+python -O -m compileall qvm-core qmemman
 make -C restore
+make -C ../common
 
 %install
 
@@ -68,6 +69,8 @@ cp qvm-core/qubes.py $RPM_BUILD_ROOT%{python_sitearch}/qubes
 cp qvm-core/qubes.py[co] $RPM_BUILD_ROOT%{python_sitearch}/qubes
 cp qvm-core/__init__.py $RPM_BUILD_ROOT%{python_sitearch}/qubes
 cp qvm-core/__init__.py[co] $RPM_BUILD_ROOT%{python_sitearch}/qubes
+cp qmemman/qmemman*py $RPM_BUILD_ROOT%{python_sitearch}/qubes
+cp qmemman/qmemman*py[co] $RPM_BUILD_ROOT%{python_sitearch}/qubes
 
 mkdir -p $RPM_BUILD_ROOT/usr/lib/qubes
 cp aux-tools/patch_appvm_initramfs.sh $RPM_BUILD_ROOT/usr/lib/qubes
@@ -78,6 +81,8 @@ cp aux-tools/convert_dirtemplate2vm.sh $RPM_BUILD_ROOT/usr/lib/qubes
 cp aux-tools/create_apps_for_appvm.sh $RPM_BUILD_ROOT/usr/lib/qubes
 cp aux-tools/remove_appvm_appmenus.sh $RPM_BUILD_ROOT/usr/lib/qubes
 cp pendrive_swapper/qubes_pencmd $RPM_BUILD_ROOT/usr/lib/qubes
+cp qmemman/server.py $RPM_BUILD_ROOT/usr/lib/qubes/qmemman_daemon.py
+cp ../common/meminfo-writer $RPM_BUILD_ROOT/usr/lib/qubes/
 
 cp restore/xenstore-watch restore/qvm-create-default-dvm $RPM_BUILD_ROOT/usr/bin
 cp restore/qubes_restore restore/xenfreepages $RPM_BUILD_ROOT/usr/lib/qubes
@@ -199,6 +204,7 @@ fi
 %{python_sitearch}/qubes/__init__.py
 %{python_sitearch}/qubes/__init__.pyc
 %{python_sitearch}/qubes/__init__.pyo
+%{python_sitearch}/qubes/qmemman*.py*
 /usr/lib/qubes/patch_appvm_initramfs.sh
 /usr/lib/qubes/unbind_pci_device.sh
 /usr/lib/qubes/unbind_all_network_devices
@@ -207,6 +213,8 @@ fi
 /usr/lib/qubes/create_apps_for_appvm.sh
 /usr/lib/qubes/remove_appvm_appmenus.sh
 /usr/lib/qubes/qubes_pencmd
+/usr/lib/qubes/qmemman_daemon.py*
+/usr/lib/qubes/meminfo-writer
 %attr(770,root,qubes) %dir /var/lib/qubes
 %attr(770,root,qubes) %dir /var/lib/qubes/vm-templates
 %attr(770,root,qubes) %dir /var/lib/qubes/appvms