diff --git a/src/sbin/livemedia-creator b/src/sbin/livemedia-creator
index 4932466a..93ec42f5 100755
--- a/src/sbin/livemedia-creator
+++ b/src/sbin/livemedia-creator
@@ -311,7 +311,7 @@ class VirtualInstall( object ):
 
         rc = execWithRedirect("virt-install", args)
         if rc:
-            raise Exception("Problem starting virtual install")
+            raise InstallError("Problem starting virtual install")
 
         conn = libvirt.openReadOnly(None)
         dom = conn.lookupByName(self.virt_name)
@@ -625,14 +625,20 @@ def virt_install(opts, install_log, disk_img, disk_size):
     if opts.proxy:
         kernel_args += " proxy="+opts.proxy
 
-    virt = VirtualInstall(iso_mount, opts.ks, disk_img, disk_size,
-                           kernel_args, opts.ram, opts.vnc, opts.arch,
-                           log_check = log_monitor.server.log_check,
-                           virtio_host = log_monitor.host,
-                           virtio_port = log_monitor.port)
-    virt.destroy()
-    log_monitor.shutdown()
-    iso_mount.umount()
+    try:
+        virt = VirtualInstall(iso_mount, opts.ks, disk_img, disk_size,
+                               kernel_args, opts.ram, opts.vnc, opts.arch,
+                               log_check = log_monitor.server.log_check,
+                               virtio_host = log_monitor.host,
+                               virtio_port = log_monitor.port)
+        virt.destroy()
+        log_monitor.shutdown()
+    except InstallError as e:
+        log.error("VirtualInstall failed: %s", e)
+        raise
+    finally:
+        log.info("unmounting the iso")
+        iso_mount.umount()
 
     if log_monitor.server.log_check():
         raise InstallError("virt_install failed")
@@ -682,7 +688,7 @@ def make_image(opts, ks):
             virt_install(opts, install_log, disk_img, disk_size)
     except InstallError as e:
         log.error("Install failed: {0}".format(e))
-        if not opts.keep_image:
+        if not opts.keep_image and os.path.exists(disk_img):
             log.info("Removing bad disk image")
             os.unlink(disk_img)
         raise