I Sent this to the wrong list (libvirt-devel) on friday ... so i am trying to send it to the correct one this time.
Apologize for double posting.
still i am posting it here because is absolutely possible i am doing something wrong and someone here will see it .
Platform is Centos 6.4 (problem was present in 6.3 as well starting with libvirt-0.9.10-21.el6.3.7 )
The patch that actually is causing the problem is patch number 398 in the src rpm for libvirt-0.9.10-21.el6.3.7 :
And i verified it by removing the patch and recompiling the rpm , that indeed worked perfectly after that.
The problem exists in every version up to the latest (that is what i am running now) but now the patch is part of the libvirt source code in itself and not a patch in the rpm anymore.
1) Start VM with 12GB of MAX and CURRENT (12582912)
(tail -f libvirtd.log | grep -i balloon)
2013-03-22 21:06:34.438+0000: 23180: debug : qemuMonitorSetBalloon:1690 : mon=0x7f3d6c1789e0 newmem=12582912
2013-03-22 21:06:34.438+0000: 23180: debug : virJSONValueToString:1133 : result={"execute":"balloon","arguments":{"value":12884901888},"id":"libvirt-6"}
2013-03-22 21:06:34.438+0000: 23180: debug : qemuMonitorJSONCommandWithFd:265 : Send command '{"execute":"balloon","arguments":{"value":12884901888},"id":"libvirt-6"}' for write with FD -1
2013-03-22 21:06:34.438+0000: 23180: debug : qemuMonitorSend:903 : QEMU_MONITOR_SEND_MSG: mon=0x7f3d6c1789e0 msg={"execute":"balloon","arguments":{"value":12884901888},"id":"libvirt-6"}
2013-03-22 21:06:34.439+0000: 23179: debug : qemuMonitorIOWrite:461 : QEMU_MONITOR_IO_WRITE: mon=0x7f3d6c1789e0 buf={"execute":"balloon","arguments":{"value":12884901888},"id":"libvirt-6"}
# dominfo 2
Id: 2
Name: centos_jt
UUID: bc25a6c4-ba34-a593-47c7-6372999946d6
OS Type: hvm
State: running
CPU(s): 1
CPU time: 26.6s
Max memory: 12582912 KiB
Used memory: 12582912 KiB
Persistent: yes
Autostart: disable
Managed save: no
Security model: none
Security DOI: 0
2) set mem to 8GB (Fail as described)
# setmem 2 --live --config --size 8388608
2013-03-22 21:13:45.522+0000: 23183: debug : qemuMonitorSetBalloon:1690 : mon=0x7f3d6c1789e0 newmem=8388608
2013-03-22 21:13:45.522+0000: 23183: debug : virJSONValueToString:1133 : result={"execute":"balloon","arguments":{"value":8589934592},"id":"libvirt-9"}
2013-03-22 21:13:45.522+0000: 23183: debug : qemuMonitorJSONCommandWithFd:265 : Send command '{"execute":"balloon","arguments":{"value":8589934592},"id":"libvirt-9"}' for write with FD -1
2013-03-22 21:13:45.522+0000: 23183: debug : qemuMonitorSend:903 : QEMU_MONITOR_SEND_MSG: mon=0x7f3d6c1789e0 msg={"execute":"balloon","arguments":{"value":8589934592},"id":"libvirt-9"}
2013-03-22 21:13:45.523+0000: 23179: debug : qemuMonitorIOWrite:461 : QEMU_MONITOR_IO_WRITE: mon=0x7f3d6c1789e0 buf={"execute":"balloon","arguments":{"value":8589934592},"id":"libvirt-9"}
2013-03-22 21:13:45.528+0000: 23179: debug : qemuMonitorIOProcess:353 : QEMU_MONITOR_IO_PROCESS: mon=0x7f3d6c1789e0 buf={"timestamp": {"seconds": 1363986825, "microseconds": 528314}, "event": "BALLOON_CHANGE", "data": {"actual": 12883853312}}
2013-03-22 21:13:45.528+0000: 23179: debug : qemuMonitorJSONIOProcessLine:152 : Line [{"timestamp": {"seconds": 1363986825, "microseconds": 528314}, "event": "BALLOON_CHANGE", "data": {"actual": 12883853312}}]
2013-03-22 21:13:45.528+0000: 23179: debug : virJSONValueFromString:975 : string={"timestamp": {"seconds": 1363986825, "microseconds": 528314}, "event": "BALLOON_CHANGE", "data": {"actual": 12883853312}}
2013-03-22 21:13:45.528+0000: 23179: debug : qemuMonitorJSONIOProcessLine:167 : QEMU_MONITOR_RECV_EVENT: mon=0x7f3d6c1789e0 event={"timestamp": {"seconds": 1363986825, "microseconds": 528314}, "event": "BALLOON_CHANGE", "data": {"actual": 12883853312}}
2013-03-22 21:13:45.528+0000: 23179: debug : qemuMonitorJSONIOProcessEvent:138 : handle BALLOON_CHANGE handler=0x4b4de0 data=0x1685ce0
2013-03-22 21:13:45.528+0000: 23179: debug : qemuMonitorEmitBalloonChange:1151 : mon=0x7f3d6c1789e0
2013-03-22 21:13:45.528+0000: 23179: debug : qemuProcessHandleBalloonChange:1248 : Updating balloon from 12582912 to 12581888 kb
2013-03-22 21:13:46.528+0000: 23179: debug : qemuMonitorIOProcess:353 : QEMU_MONITOR_IO_PROCESS: mon=0x7f3d6c1789e0 buf={"timestamp": {"seconds": 1363986826, "microseconds": 352941}, "event": "BALLOON_CHANGE", "data": {"actual": 12884901888}}
2013-03-22 21:13:46.528+0000: 23179: debug : qemuMonitorJSONIOProcessLine:152 : Line [{"timestamp": {"seconds": 1363986826, "microseconds": 352941}, "event": "BALLOON_CHANGE", "data": {"actual": 12884901888}}]
2013-03-22 21:13:46.528+0000: 23179: debug : virJSONValueFromString:975 : string={"timestamp": {"seconds": 1363986826, "microseconds": 352941}, "event": "BALLOON_CHANGE", "data": {"actual": 12884901888}}
2013-03-22 21:13:46.528+0000: 23179: debug : qemuMonitorJSONIOProcessLine:167 : QEMU_MONITOR_RECV_EVENT: mon=0x7f3d6c1789e0 event={"timestamp": {"seconds": 1363986826, "microseconds": 352941}, "event": "BALLOON_CHANGE", "data": {"actual": 12884901888}}
2013-03-22 21:13:46.528+0000: 23179: debug : qemuMonitorJSONIOProcessEvent:138 : handle BALLOON_CHANGE handler=0x4b4de0 data=0x1686770
2013-03-22 21:13:46.528+0000: 23179: debug : qemuMonitorEmitBalloonChange:1151 : mon=0x7f3d6c1789e0
2013-03-22 21:13:46.528+0000: 23179: debug : qemuProcessHandleBalloonChange:1248 : Updating balloon from 12581888 to 12582912 kb
virsh # dominfo 2
Id: 2
Name: centos_jt
UUID: bc25a6c4-ba34-a593-47c7-6372999946d6
OS Type: hvm
State: running
CPU(s): 1
CPU time: 41.6s
Max memory: 12582912 KiB
Used memory: 12582912 KiB
Persistent: yes
Autostart: disable
Managed save: no
Security model: none
Security DOI: 0
virsh # dommemstat 2
actual 8388608
rss 599916
The Balloon was actually inflated , and in the VM i can see 8GB of Ram available with free
3) setmem to to 3000000 (Fail as described)
2013-03-22 21:18:19.182+0000: 23181: debug : qemuMonitorSetBalloon:1690 : mon=0x7f3d6c1789e0 newmem=3000000
2013-03-22 21:18:19.182+0000: 23181: debug : virJSONValueToString:1133 : result={"execute":"balloon","arguments":{"value":3072000000},"id":"libvirt-63"}
2013-03-22 21:18:19.182+0000: 23181: debug : qemuMonitorJSONCommandWithFd:265 : Send command '{"execute":"balloon","arguments":{"value":3072000000},"id":"libvirt-63"}' for write with FD -1
2013-03-22 21:18:19.182+0000: 23181: debug : qemuMonitorSend:903 : QEMU_MONITOR_SEND_MSG: mon=0x7f3d6c1789e0 msg={"execute":"balloon","arguments":{"value":3072000000},"id":"libvirt-63"}
2013-03-22 21:18:19.183+0000: 23179: debug : qemuMonitorIOWrite:461 : QEMU_MONITOR_IO_WRITE: mon=0x7f3d6c1789e0 buf={"execute":"balloon","arguments":{"value":3072000000},"id":"libvirt-63"}
2013-03-22 21:18:19.184+0000: 23179: debug : qemuMonitorIOProcess:353 : QEMU_MONITOR_IO_PROCESS: mon=0x7f3d6c1789e0 buf={"timestamp": {"seconds": 1363987099, "microseconds": 184245}, "event": "BALLOON_CHANGE", "data": {"actual": 12883853312}}
2013-03-22 21:18:19.184+0000: 23179: debug : qemuMonitorJSONIOProcessLine:152 : Line [{"timestamp": {"seconds": 1363987099, "microseconds": 184245}, "event": "BALLOON_CHANGE", "data": {"actual": 12883853312}}]
2013-03-22 21:18:19.184+0000: 23179: debug : virJSONValueFromString:975 : string={"timestamp": {"seconds": 1363987099, "microseconds": 184245}, "event": "BALLOON_CHANGE", "data": {"actual": 12883853312}}
2013-03-22 21:18:19.184+0000: 23179: debug : qemuMonitorJSONIOProcessLine:167 : QEMU_MONITOR_RECV_EVENT: mon=0x7f3d6c1789e0 event={"timestamp": {"seconds": 1363987099, "microseconds": 184245}, "event": "BALLOON_CHANGE", "data": {"actual": 12883853312}}
2013-03-22 21:18:19.184+0000: 23179: debug : qemuMonitorJSONIOProcessEvent:138 : handle BALLOON_CHANGE handler=0x4b4de0 data=0x1688320
2013-03-22 21:18:19.184+0000: 23179: debug : qemuMonitorEmitBalloonChange:1151 : mon=0x7f3d6c1789e0
2013-03-22 21:18:19.191+0000: 23179: debug : qemuProcessHandleBalloonChange:1248 : Updating balloon from 12582912 to 12581888 kb
2013-03-22 21:18:20.184+0000: 23179: debug : qemuMonitorIOProcess:353 : QEMU_MONITOR_IO_PROCESS: mon=0x7f3d6c1789e0 buf={"timestamp": {"seconds": 1363987100, "microseconds": 184128}, "event": "BALLOON_CHANGE", "data": {"actual": 11874074624}}
2013-03-22 21:18:20.184+0000: 23179: debug : qemuMonitorJSONIOProcessLine:152 : Line [{"timestamp": {"seconds": 1363987100, "microseconds": 184128}, "event": "BALLOON_CHANGE", "data": {"actual": 11874074624}}]
2013-03-22 21:18:20.184+0000: 23179: debug : virJSONValueFromString:975 : string={"timestamp": {"seconds": 1363987100, "microseconds": 184128}, "event": "BALLOON_CHANGE", "data": {"actual": 11874074624}}
2013-03-22 21:18:20.184+0000: 23179: debug : qemuMonitorJSONIOProcessLine:167 : QEMU_MONITOR_RECV_EVENT: mon=0x7f3d6c1789e0 event={"timestamp": {"seconds": 1363987100, "microseconds": 184128}, "event": "BALLOON_CHANGE", "data": {"actual": 11874074624}}
2013-03-22 21:18:20.184+0000: 23179: debug : qemuMonitorJSONIOProcessEvent:138 : handle BALLOON_CHANGE handler=0x4b4de0 data=0x1685ce0
2013-03-22 21:18:20.184+0000: 23179: debug : qemuMonitorEmitBalloonChange:1151 : mon=0x7f3d6c1789e0
2013-03-22 21:18:20.184+0000: 23179: debug : qemuProcessHandleBalloonChange:1248 : Updating balloon from 12581888 to 11595776 kb
2013-03-22 21:18:21.184+0000: 23179: debug : qemuMonitorIOProcess:353 : QEMU_MONITOR_IO_PROCESS: mon=0x7f3d6c1789e0 buf={"timestamp": {"seconds": 1363987100, "microseconds": 224930}, "event": "BALLOON_CHANGE", "data": {"actual": 11661934592}}
2013-03-22 21:18:21.184+0000: 23179: debug : qemuMonitorJSONIOProcessLine:152 : Line [{"timestamp": {"seconds": 1363987100, "microseconds": 224930}, "event": "BALLOON_CHANGE", "data": {"actual": 11661934592}}]
2013-03-22 21:18:21.184+0000: 23179: debug : virJSONValueFromString:975 : string={"timestamp": {"seconds": 1363987100, "microseconds": 224930}, "event": "BALLOON_CHANGE", "data": {"actual": 11661934592}}
2013-03-22 21:18:21.184+0000: 23179: debug : qemuMonitorJSONIOProcessLine:167 : QEMU_MONITOR_RECV_EVENT: mon=0x7f3d6c1789e0 event={"timestamp": {"seconds": 1363987100, "microseconds": 224930}, "event": "BALLOON_CHANGE", "data": {"actual": 11661934592}}
2013-03-22 21:18:21.184+0000: 23179: debug : qemuMonitorJSONIOProcessEvent:138 : handle BALLOON_CHANGE handler=0x4b4de0 data=0x1686770
2013-03-22 21:18:21.184+0000: 23179: debug : qemuMonitorEmitBalloonChange:1151 : mon=0x7f3d6c1789e0
2013-03-22 21:18:21.184+0000: 23179: debug : qemuProcessHandleBalloonChange:1248 : Updating balloon from 11595776 to 11388608
virsh # dominfo 2
Id: 2
Name: centos_jt
UUID: bc25a6c4-ba34-a593-47c7-6372999946d6
OS Type: hvm
State: running
CPU(s): 1
CPU time: 53.0s
Max memory: 12582912 KiB
Used memory: 11388608 KiB
Persistent: yes
Autostart: disable
Managed save: no
Security model: none
Security DOI: 0
virsh # dommemstat 2
actual 3000000
rss 599036
4) Restart the SAME vm with 4GB of Current and Max (4194304)
2013-03-22 21:20:58.894+0000: 23182: debug : qemuMonitorSetBalloon:1690 : mon=0x7f3d643eb5a0 newmem=4194304
2013-03-22 21:20:58.894+0000: 23182: debug : virJSONValueToString:1133 : result={"execute":"balloon","arguments":{"value":4294967296},"id":"libvirt-6"}
2013-03-22 21:20:58.894+0000: 23182: debug : qemuMonitorJSONCommandWithFd:265 : Send command '{"execute":"balloon","arguments":{"value":4294967296},"id":"libvirt-6"}' for write with FD -1
2013-03-22 21:20:58.894+0000: 23182: debug : qemuMonitorSend:903 : QEMU_MONITOR_SEND_MSG: mon=0x7f3d643eb5a0 msg={"execute":"balloon","arguments":{"value":4294967296},"id":"libvirt-6"}
2013-03-22 21:20:58.894+0000: 23179: debug : qemuMonitorIOWrite:461 : QEMU_MONITOR_IO_WRITE: mon=0x7f3d643eb5a0 buf={"execute":"balloon","arguments":{"value":4294967296},"id":"libvirt-6"}
virsh # dominfo 3
Id: 3
Name: centos_jt
UUID: bc25a6c4-ba34-a593-47c7-6372999946d6
OS Type: hvm
State: running
CPU(s): 1
CPU time: 15.4s
Max memory: 4194304 KiB
Used memory: 4194304 KiB
Persistent: yes
Autostart: disable
Managed save: no
Security model: none
Security DOI: 0
virsh # dommemstat 3
actual 4194304
rss 431384
5) reduce ram to 1GB (Works)
virsh # setmem 3 --live --config --size 1048576
2013-03-22 21:26:08.783+0000: 23183: debug : qemuMonitorSetBalloon:1690 : mon=0x7f3d643eb5a0 newmem=1048576
2013-03-22 21:26:08.783+0000: 23183: debug : virJSONValueToString:1133 : result={"execute":"balloon","arguments":{"value":1073741824},"id":"libvirt-11"}
2013-03-22 21:26:08.783+0000: 23183: debug : qemuMonitorJSONCommandWithFd:265 : Send command '{"execute":"balloon","arguments":{"value":1073741824},"id":"libvirt-11"}' for write with FD -1
2013-03-22 21:26:08.783+0000: 23183: debug : qemuMonitorSend:903 : QEMU_MONITOR_SEND_MSG: mon=0x7f3d643eb5a0 msg={"execute":"balloon","arguments":{"value":1073741824},"id":"libvirt-11"}
2013-03-22 21:26:08.784+0000: 23179: debug : qemuMonitorIOWrite:461 : QEMU_MONITOR_IO_WRITE: mon=0x7f3d643eb5a0 buf={"execute":"balloon","arguments":{"value":1073741824},"id":"libvirt-11"}
2013-03-22 21:26:08.789+0000: 23179: debug : qemuMonitorIOProcess:353 : QEMU_MONITOR_IO_PROCESS: mon=0x7f3d643eb5a0 buf={"timestamp": {"seconds": 1363987568, "microseconds": 789570}, "event": "BALLOON_CHANGE", "data": {"actual": 4293918720}}
2013-03-22 21:26:08.789+0000: 23179: debug : qemuMonitorJSONIOProcessLine:152 : Line [{"timestamp": {"seconds": 1363987568, "microseconds": 789570}, "event": "BALLOON_CHANGE", "data": {"actual": 4293918720}}]
2013-03-22 21:26:08.789+0000: 23179: debug : virJSONValueFromString:975 : string={"timestamp": {"seconds": 1363987568, "microseconds": 789570}, "event": "BALLOON_CHANGE", "data": {"actual": 4293918720}}
2013-03-22 21:26:08.789+0000: 23179: debug : qemuMonitorJSONIOProcessLine:167 : QEMU_MONITOR_RECV_EVENT: mon=0x7f3d643eb5a0 event={"timestamp": {"seconds": 1363987568, "microseconds": 789570}, "event": "BALLOON_CHANGE", "data": {"actual": 4293918720}}
2013-03-22 21:26:08.789+0000: 23179: debug : qemuMonitorJSONIOProcessEvent:138 : handle BALLOON_CHANGE handler=0x4b4de0 data=0x1686360
2013-03-22 21:26:08.789+0000: 23179: debug : qemuMonitorEmitBalloonChange:1151 : mon=0x7f3d643eb5a0
2013-03-22 21:26:08.789+0000: 23179: debug : qemuProcessHandleBalloonChange:1248 : Updating balloon from 4194304 to 4193280 kb
2013-03-22 21:26:09.789+0000: 23179: debug : qemuMonitorIOProcess:353 : QEMU_MONITOR_IO_PROCESS: mon=0x7f3d643eb5a0 buf={"timestamp": {"seconds": 1363987569, "microseconds": 408889}, "event": "BALLOON_CHANGE", "data": {"actual": 1073741824}}
2013-03-22 21:26:09.789+0000: 23179: debug : qemuMonitorJSONIOProcessLine:152 : Line [{"timestamp": {"seconds": 1363987569, "microseconds": 408889}, "event": "BALLOON_CHANGE", "data": {"actual": 1073741824}}]
2013-03-22 21:26:09.789+0000: 23179: debug : virJSONValueFromString:975 : string={"timestamp": {"seconds": 1363987569, "microseconds": 408889}, "event": "BALLOON_CHANGE", "data": {"actual": 1073741824}}
2013-03-22 21:26:09.789+0000: 23179: debug : qemuMonitorJSONIOProcessLine:167 : QEMU_MONITOR_RECV_EVENT: mon=0x7f3d643eb5a0 event={"timestamp": {"seconds": 1363987569, "microseconds": 408889}, "event": "BALLOON_CHANGE", "data": {"actual": 1073741824}}
2013-03-22 21:26:09.789+0000: 23179: debug : qemuMonitorJSONIOProcessEvent:138 : handle BALLOON_CHANGE handler=0x4b4de0 data=0x16826e0
2013-03-22 21:26:09.789+0000: 23179: debug : qemuMonitorEmitBalloonChange:1151 : mon=0x7f3d643eb5a0
2013-03-22 21:26:09.789+0000: 23179: debug : qemuProcessHandleBalloonChange:1248 : Updating balloon from 4193280 to 1048576 kb
virsh # dominfo 3
Id: 3
Name: centos_jt
UUID: bc25a6c4-ba34-a593-47c7-6372999946d6
OS Type: hvm
State: running
CPU(s): 1
CPU time: 28.6s
Max memory: 4194304 KiB
Used memory: 1048576 KiB
Persistent: yes
Autostart: disable
Managed save: no
Security model: none
Security DOI: 0
virsh # dommemstat 3
actual 1048576
rss 411740