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There are plenty discussion about this in the forum. Just do a search.
Long story short... you can't just use the free space on the system disk for anything other than the VM server itself.
I don't know why you are talking about server pools. Server pools serve not purpose unless they are on shared storage. The only exception is non clustered server pools. A non-clustered server pool requires no storage space. I think your talking about storage repositories. In such a case.... you must have a raw Disk/LUN To create a storage repo. The only exception is creating storage repos on NFS mounts.
I used to configure the local storage many times with Oracle VM 3.1.1 and working fine. You must separate disks (have at least 2 hard disks or 2 groups of Hard Disk Array) one for VM Server OS and one for Local Storage.
Good luck & regards,
As per your suggestions i installed oracle vm server on /dev/sda .Now i have a 1500 free space on /dev/sdb i want to use this as local storage .Is it possible?If yes how can i use /dev/sdb as storage area.
Please make sure you have 2 hard disks are /dev/sda for OS and /dev/sdb for Local Storage. During installation, pls leave one disk and after installation you will see /dev/sdb dom-0 for local storage.