diff --git a/po/POTFILES.in b/po/POTFILES.in
index d125b1e3..48545764 100644
--- a/po/POTFILES.in
+++ b/po/POTFILES.in
@@ -42,3 +42,4 @@ src/virtManager/domain.py
 src/virtManager/__init__.py
 src/virtManager/manager.py
 src/virtManager/remote.py
+src/virtManager/util.py
diff --git a/src/virtManager/addhardware.py b/src/virtManager/addhardware.py
index ca403453..fb29b672 100644
--- a/src/virtManager/addhardware.py
+++ b/src/virtManager/addhardware.py
@@ -34,6 +34,7 @@ import logging
 import dbus
 import traceback
 
+import virtManager.util as vmmutil
 from virtManager.asyncjob import vmmAsyncJob
 from virtManager.error import vmmErrorDialog
 from virtManager.createmeter import vmmCreateMeter
@@ -735,6 +736,9 @@ class vmmAddHardware(gobject.GObject):
                 readonly=True
 
             try:
+                if os.path.dirname(os.path.abspath(path)) == \
+                   vmmutil.DEFAULT_POOL_PATH:
+                    vmmutil.build_default_pool(self.vm.get_connection().vmm)
                 self._dev = virtinst.VirtualDisk(self.get_config_disk_image(),
                                                  filesize,
                                                  type = type,
diff --git a/src/virtManager/create.py b/src/virtManager/create.py
index 84530380..e7c320c2 100644
--- a/src/virtManager/create.py
+++ b/src/virtManager/create.py
@@ -34,6 +34,7 @@ import logging
 import dbus
 import traceback
 
+import virtManager.util as vmmutil
 from virtManager.asyncjob import vmmAsyncJob
 from virtManager.error import vmmErrorDialog
 from virtManager.createmeter import vmmCreateMeter
@@ -976,12 +977,11 @@ class vmmCreate(gobject.GObject):
                     self._guest.extraargs = kernel_params
                 else:
                     self._guest.extraargs = "%s %s" % (self._guest.extraargs, kernel_params)
-		self._guest.extraargs = self._guest.extraargs.strip()
+                self._guest.extraargs = self._guest.extraargs.strip()
 
         elif page_num == PAGE_DISK:
-            
-            disk = self.get_config_disk_image()
-            if disk == None or len(disk) == 0:
+            path = self.get_config_disk_image()
+            if path == None or len(path) == 0:
                 return self.err.val_err(_("Storage Address Required"), \
                                         _("You must specify a partition or a file for storage for the guest install"))
 
@@ -995,7 +995,11 @@ class vmmCreate(gobject.GObject):
                 else:
                     type = virtinst.VirtualDisk.TYPE_FILE
 
-                self._disk = virtinst.VirtualDisk(self.get_config_disk_image(),
+                if (os.path.dirname(os.path.abspath(path)) == \
+                    vmmutil.DEFAULT_POOL_PATH):
+                    vmmutil.build_default_pool(self._guest.conn)
+
+                self._disk = virtinst.VirtualDisk(path,
                                                   filesize,
                                                   sparse = self.is_sparse_file(),
                                                   device = virtinst.VirtualDisk.DEVICE_DISK,
@@ -1022,7 +1026,7 @@ class vmmCreate(gobject.GObject):
                     return False
 
             if self._disk.is_conflict_disk(self._guest.conn) is True:
-               res = self.err.yes_no(_('Disk "%s" is already in use by another guest!' % disk), _("Do you really want to use the disk ?"))
+               res = self.err.yes_no(_('Disk "%s" is already in use by another guest!' % self._disk.path), _("Do you really want to use the disk ?"))
                return res
 
         elif page_num == PAGE_NETWORK:
diff --git a/src/virtManager/util.py b/src/virtManager/util.py
new file mode 100644
index 00000000..9c5c1869
--- /dev/null
+++ b/src/virtManager/util.py
@@ -0,0 +1,54 @@
+#
+# Copyright (C) 2008 Red Hat, Inc.
+# Copyright (C) 2008 Cole Robinson <crobinso@redhat.com>
+#
+# This program is free software; you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation; either version 2 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program; if not, write to the Free Software
+# Foundation, Inc., 51 Franklin Street, Fifth Floor, Boston,
+# MA 02110-1301 USA.
+#
+
+import logging
+
+import libvirt
+
+import virtinst
+
+DEFAULT_POOL_NAME = "default"
+DEFAULT_POOL_PATH = "/var/lib/libvirt/images"
+
+def build_default_pool(conn):
+    """Helper to build the 'default' storage pool"""
+    if not virtinst.util.is_storage_capable(conn):
+        # VirtualDisk will raise an error for us
+        return
+    pool = None
+    try:
+        pool = conn.storagePoolLookupByName(DEFAULT_POOL_NAME)
+    except libvirt.libvirtError:
+        pass
+
+    if pool:
+        return
+
+    try:
+        logging.debug("Attempting to build default pool with target '%s'" %
+                      DEFAULT_POOL_PATH)
+        defpool = virtinst.Storage.DirectoryPool(conn=conn,
+                                                 name=DEFAULT_POOL_NAME,
+                                                 target_path=DEFAULT_POOL_PATH)
+        newpool = defpool.install(build=True, create=True)
+        newpool.setAutostart(True)
+    except Exception, e:
+        raise RuntimeError(_("Couldn't create default storage pool '%s': %s") %
+                             (DEFAULT_POOL_PATH, str(e)))