diff --git a/run.sh b/run.sh
index 32c57e0..5f4fa6f 100755
--- a/run.sh
+++ b/run.sh
@@ -19,8 +19,11 @@ readonly ISO_PATH="${SCRIPT_DIR}/output/knel-football-secure.iso"
 readonly VM_NAME="knel-football-test"
 readonly VM_RAM="2048"
 readonly VM_CPUS="2"
-readonly VM_DISK_SIZE="10G"
-readonly VM_DISK_PATH="/tmp/${VM_NAME}.qcow2"
+readonly VM_DISK_SIZE="10"
+readonly LIBVIRT_URI="qemu:///system"
+readonly VM_DISK_PATH="/var/lib/libvirt/images/${VM_NAME}.qcow2"
+VM_ISO_PATH="/var/lib/libvirt/images/$(basename "$ISO_PATH")"
+readonly VM_ISO_PATH
 
 # Colors for output
 readonly RED='\033[0;31m'
@@ -51,15 +54,15 @@ vm_check_prerequisites() {
         return 1
     fi
     
-    # Check actual libvirt access (not just group membership)
-    if ! virsh list &> /dev/null; then
-        log_error "Cannot connect to libvirt"
+    # Check system libvirt access (required for virt-manager visibility)
+    if ! virsh -c "$LIBVIRT_URI" list &> /dev/null; then
+        log_error "Cannot connect to system libvirt ($LIBVIRT_URI)"
         log_error "Ensure libvirtd is running and you have access"
         log_error "Try: sudo usermod -aG libvirt \$USER && logout/login"
         return 1
     fi
     
-    # Check for qemu-img command
+    # Check for qemu-img command (required for disk creation)
     if ! command -v qemu-img &> /dev/null; then
         log_error "qemu-img command not found"
         log_error "Install qemu: sudo apt install qemu-utils"
@@ -73,40 +76,41 @@ vm_check_prerequisites() {
         return 1
     fi
     
+    # Check if libvirt images directory exists
+    if [[ ! -d "/var/lib/libvirt/images" ]]; then
+        log_error "Libvirt images directory not found"
+        log_error "Ensure libvirt is properly installed: sudo apt install libvirt-daemon-system"
+        return 1
+    fi
+    
     log_info "All prerequisites satisfied"
     return 0
 }
 
-# Create VM disk image
-vm_create_disk() {
-    log_info "Creating disk image: $VM_DISK_PATH"
-    rm -f "$VM_DISK_PATH"
-    qemu-img create -f qcow2 "$VM_DISK_PATH" "$VM_DISK_SIZE"
-}
-
-# Create and start VM
+# Create and start VM using virsh define (virt-install requires storage pools)
 vm_create() {
-    # Define libvirt session URI (use session for user-mode, avoids sudo)
-    local LIBVIRT_URI="qemu:///session"
-
     log_info "Creating VM: $VM_NAME (libvirt: $LIBVIRT_URI)"
 
-    # Destroy existing VM if present (in session libvirt)
+    # Destroy existing VM if present
     virsh -c "$LIBVIRT_URI" destroy "$VM_NAME" 2>/dev/null || true
     virsh -c "$LIBVIRT_URI" undefine "$VM_NAME" --nvram 2>/dev/null || true
 
-    # Create disk
-    vm_create_disk
+    # Copy ISO to system storage (libvirt needs access)
+    log_info "Copying ISO to libvirt storage (may require sudo)..."
+    if ! sudo cp -f "$ISO_PATH" "$VM_ISO_PATH" 2>/dev/null; then
+        log_error "Failed to copy ISO. Run this command from terminal to enter sudo password."
+        return 1
+    fi
+    sudo chown libvirt-qemu:libvirt-qemu "$VM_ISO_PATH" 2>/dev/null || true
+    sudo chmod 644 "$VM_ISO_PATH" 2>/dev/null || true
 
-    # Find UEFI firmware with Secure Boot support (REQUIRED)
+    # Find UEFI firmware with Secure Boot support
     local uefi_code=""
     local uefi_vars=""
-
-    # Prefer Secure Boot enabled firmware
     for fw_dir in /usr/share/OVMF /usr/share/qemu; do
         if [[ -f "$fw_dir/OVMF_CODE_4M.secboot.fd" ]]; then
             uefi_code="$fw_dir/OVMF_CODE_4M.secboot.fd"
-            uefi_vars="$fw_dir/OVMF_VARS_4M.ms.fd"
+            uefi_vars="$fw_dir/OVMF_VARS_4M.fd"
             break
         elif [[ -f "$fw_dir/OVMF_CODE_4M.fd" ]]; then
             uefi_code="$fw_dir/OVMF_CODE_4M.fd"
@@ -120,44 +124,40 @@ vm_create() {
     done
 
     if [[ -z "$uefi_code" || ! -f "$uefi_code" ]]; then
-        log_error "UEFI firmware with Secure Boot (OVMF) not found"
+        log_error "UEFI firmware (OVMF) not found"
         log_error "Install required: sudo apt install ovmf"
-        log_error "UEFI with Secure Boot is REQUIRED for KNEL-Football testing"
         return 1
     fi
 
-    # Create copy of OVMF_VARS for this VM (Secure Boot state stored here)
-    local vm_vars="/tmp/${VM_NAME}_VARS.fd"
-    cp "$uefi_vars" "$vm_vars"
-
-    if [[ "$uefi_code" == *".secboot.fd" ]]; then
-        log_info "Using UEFI firmware with Secure Boot: $uefi_code"
-    else
-        log_warn "Using UEFI firmware WITHOUT Secure Boot: $uefi_code"
-        log_warn "For full Secure Boot testing, install: sudo apt install ovmf"
-    fi
-
-    # Determine secure boot setting
+    # Determine if Secure Boot is available
     local secure_boot="no"
-    if [[ "$uefi_code" == *".secboot.fd" ]]; then
+    if [[ "$uefi_code" == *"secboot"* ]]; then
         secure_boot="yes"
+        log_info "Using UEFI with Secure Boot: $uefi_code"
+    else
+        log_warn "Using UEFI WITHOUT Secure Boot: $uefi_code"
     fi
 
-    # Use persisted XML template
+    # Pre-create disk image
+    log_info "Creating disk image: $VM_DISK_PATH"
+    sudo rm -f "$VM_DISK_PATH" 2>/dev/null || true
+    if ! sudo qemu-img create -f qcow2 "$VM_DISK_PATH" "${VM_DISK_SIZE}G"; then
+        log_error "Failed to create disk image"
+        return 1
+    fi
+    sudo chown libvirt-qemu:libvirt-qemu "$VM_DISK_PATH" 2>/dev/null || true
+    sudo chmod 644 "$VM_DISK_PATH" 2>/dev/null || true
+
+    # Use XML template for VM definition
     local template="${SCRIPT_DIR}/vm/template.xml"
     if [[ ! -f "$template" ]]; then
         log_error "VM template not found: $template"
         return 1
     fi
 
-    # Generate dynamic values
+    # Generate UUID
     local vm_uuid
-    if command -v uuidgen &> /dev/null; then
-        vm_uuid=$(uuidgen)
-    else
-        vm_uuid=$(cat /proc/sys/kernel/random/uuid)
-    fi
-    local mac_address="52:54:00:$(od -An -N3 -tx1 /dev/urandom | tr ' ' ':' | cut -c2-13)"
+    vm_uuid=$(cat /proc/sys/kernel/random/uuid)
 
     # Create VM XML from template
     local vm_xml="/tmp/${VM_NAME}.xml"
@@ -167,55 +167,58 @@ vm_create() {
         -e "s|@VM_CPUS@|${VM_CPUS}|g" \
         -e "s|@SECURE_BOOT@|${secure_boot}|g" \
         -e "s|@UEFI_CODE@|${uefi_code}|g" \
-        -e "s|@UEFI_VARS@|${vm_vars}|g" \
+        -e "s|@UEFI_VARS_TEMPLATE@|${uefi_vars}|g" \
         -e "s|@VM_DISK@|${VM_DISK_PATH}|g" \
-        -e "s|@ISO_PATH@|${ISO_PATH}|g" \
-        -e "s|@MAC_ADDRESS@|${mac_address}|g" \
+        -e "s|@ISO_PATH@|${VM_ISO_PATH}|g" \
         "$template" > "$vm_xml"
 
-    # Define and START the VM
+    log_info "Defining VM from XML..."
+    
+    # Define the VM
     if ! virsh -c "$LIBVIRT_URI" define "$vm_xml"; then
         log_error "Failed to define VM from XML"
+        cat "$vm_xml"
         return 1
     fi
 
+    # Start the VM
+    log_info "Starting VM..."
     if ! virsh -c "$LIBVIRT_URI" start "$VM_NAME"; then
         log_error "Failed to start VM"
         return 1
     fi
 
+    # Verify VM is running
+    sleep 2
+    if virsh -c "$LIBVIRT_URI" domstate "$VM_NAME" 2>/dev/null | grep -q "running"; then
+        log_info "VM created and STARTED successfully"
+    else
+        log_warn "VM created but may not be running - check virt-manager"
+    fi
+
     # Get VNC display info
     local vnc_display
-    vnc_display=$(virsh -c "$LIBVIRT_URI" vncdisplay "$VM_NAME" 2>/dev/null)
+    vnc_display=$(virsh -c "$LIBVIRT_URI" vncdisplay "$VM_NAME" 2>/dev/null || echo "unknown")
 
-    log_info "VM created and STARTED successfully"
     log_info "VNC display: $vnc_display"
     log_info ""
-    log_info "To connect in virt-manager:"
-    log_info "  1. Open virt-manager"
-    log_info "  2. File → Add Connection"
-    log_info "  3. Enter URI: qemu:///session"
-    log_info "  4. Connect and double-click '$VM_NAME'"
+    log_info "Open virt-manager - VM '$VM_NAME' should be visible under QEMU/KVM"
 }
 
 # Connect to VM console
 vm_console() {
-    local LIBVIRT_URI="qemu:///session"
     log_info "Connecting to VM console..."
     virsh -c "$LIBVIRT_URI" console "$VM_NAME"
 }
 
 # Get VM status
 vm_status() {
-    local LIBVIRT_URI="qemu:///session"
     log_info "VM Status for: $VM_NAME"
     virsh -c "$LIBVIRT_URI" dominfo "$VM_NAME" 2>/dev/null || log_error "VM not running"
 }
 
 # Check if VM is running
 vm_is_running() {
-    local LIBVIRT_URI="qemu:///session"
-    # Check virsh session
     if virsh -c "$LIBVIRT_URI" domstate "$VM_NAME" 2>/dev/null | grep -q "running"; then
         return 0
     fi
@@ -224,7 +227,6 @@ vm_is_running() {
 
 # Capture boot screenshot
 vm_capture_screen() {
-    local LIBVIRT_URI="qemu:///session"
     local output_dir="${SCRIPT_DIR}/tmp/vm-screenshots"
     mkdir -p "$output_dir"
 
@@ -236,11 +238,10 @@ vm_capture_screen() {
 
 # Destroy VM and cleanup
 vm_destroy() {
-    local LIBVIRT_URI="qemu:///session"
     log_info "Destroying VM: $VM_NAME"
     virsh -c "$LIBVIRT_URI" destroy "$VM_NAME" 2>/dev/null || true
     virsh -c "$LIBVIRT_URI" undefine "$VM_NAME" --nvram 2>/dev/null || true
-    rm -f "$VM_DISK_PATH" "/tmp/${VM_NAME}_VARS.fd" "/tmp/${VM_NAME}.xml"
+    sudo rm -f "$VM_DISK_PATH" "$VM_ISO_PATH" "/tmp/${VM_NAME}.xml"
     log_info "Cleanup complete"
 }
 
diff --git a/vm/template.xml b/vm/template.xml
index ab31872..cec6d3b 100644
--- a/vm/template.xml
+++ b/vm/template.xml
@@ -7,7 +7,7 @@
   <os>
     <type arch='x86_64' machine='q35'>hvm</type>
     <loader readonly='yes' secure='@SECURE_BOOT@' type='pflash'>@UEFI_CODE@</loader>
-    <nvram>@UEFI_VARS@</nvram>
+    <nvram template='@UEFI_VARS_TEMPLATE@'/>
     <boot dev='cdrom'/>
     <boot dev='hd'/>
   </os>
@@ -39,7 +39,6 @@
       <readonly/>
     </disk>
     <interface type='user'>
-      <mac address='@MAC_ADDRESS@'/>
       <model type='virtio'/>
     </interface>
     <graphics type='vnc' port='-1' autoport='yes'>