So the other day I noticed my /var partition filled up in on my Dom0. One of the symtoms was not allowing me to start up any more DomU’s. So I tracked the disk usage to /var/lib/xen/save. There were files of each of my running dom u’s here which were the culprit.
Apparently, on a Debian system, upon a shutdown of the Dom0, Xen attempts to take a snapshot of the running DomU instead of issuing a shutdown command across all the DomU’s. This snapshot is stored in - you guessed it - /var/lib/xen/save - and is controlled by the XENDOMAINS_SAVE parameter in /etc/default/xendomains. In order to disable this future and always execute a shutdown of DomU’s during a shutdown of the Dom0, you can set XENDOMAINS_SAVE=”". The corresponding restore command is controlled by XENDOMAINS_RESTORE parameter. It is also safe to delete these files provided you have a newer instance of the DomU.
After realizing this I changed the path of where the running domains are stored to in case of a shutdown to a partition with sufficient space to hold the running instances. I also set the XENDOMAINS_RESTORE=true.
Thanks to the helpful individuals on the xen-users mailing lists for the info.