diff --git a/server/src/com/cloud/deploy/FirstFitPlanner.java b/server/src/com/cloud/deploy/FirstFitPlanner.java
index 1fd6d7ca902..4f1cbdb0348 100644
--- a/server/src/com/cloud/deploy/FirstFitPlanner.java
+++ b/server/src/com/cloud/deploy/FirstFitPlanner.java
@@ -519,15 +519,17 @@ public class FirstFitPlanner extends PlannerBase implements DeploymentPlanner {
 					s_logger.debug("Volume is in READY state and has pool already allocated.");
 					List<StoragePool> suitablePools = new ArrayList<StoragePool>();
 					StoragePoolVO pool = _storagePoolDao.findById(toBeCreated.getPoolId());
-					suitablePools.add(pool);
-					suitableVolumeStoragePools.put(toBeCreated, suitablePools);
-					continue;
+					if(!avoid.shouldAvoid(pool)){
+						suitablePools.add(pool);
+						suitableVolumeStoragePools.put(toBeCreated, suitablePools);
+						continue;
+					}
 	            }
 			}
 			DiskOfferingVO diskOffering = _diskOfferingDao.findById(toBeCreated.getDiskOfferingId());
-	         DiskProfile diskProfile = new DiskProfile(toBeCreated, diskOffering, vmProfile.getHypervisorType());
+	        DiskProfile diskProfile = new DiskProfile(toBeCreated, diskOffering, vmProfile.getHypervisorType());
 
-	         boolean useLocalStorage = false;
+	        boolean useLocalStorage = false;
 			if (vmProfile.getType() != VirtualMachine.Type.User) {
 			    String ssvmUseLocalStorage = _configDao.getValue(Config.SystemVMUseLocalStorage.key());
 			    if (ssvmUseLocalStorage.equalsIgnoreCase("true")) {
diff --git a/server/src/com/cloud/storage/StorageManagerImpl.java b/server/src/com/cloud/storage/StorageManagerImpl.java
index 0b3910295fb..77b254da694 100755
--- a/server/src/com/cloud/storage/StorageManagerImpl.java
+++ b/server/src/com/cloud/storage/StorageManagerImpl.java
@@ -2462,38 +2462,31 @@ public class StorageManagerImpl implements StorageManager, StorageService, Manag
         List<VolumeVO> recreateVols = new ArrayList<VolumeVO>(vols.size());
 
         for (VolumeVO vol : vols) {
-            Volume.State state = vol.getState();
-            if (state == Volume.State.Ready) {
-                StoragePoolVO pool = _storagePoolDao.findById(vol.getPoolId());
-                if (pool.getRemoved() != null || pool.isInMaintenance()) {
-                    if (vol.isRecreatable()) {
+        	if(vol.getPoolId() == null){
+        		 recreateVols.add(vol);
+        	}else{
+        		StoragePool assignedPool = dest.getStorageForDisks().get(vol);
+        		if(vol.getPoolId() != assignedPool.getId()){
+        			if (vol.isRecreatable()) {
                         if (s_logger.isDebugEnabled()) {
-                            s_logger.debug("Volume " + vol + " has to be recreated due to storage pool " + pool + " is unavailable");
+                            s_logger.debug("Volume " + vol + " has to be recreated since a different storage pool " + assignedPool + " is assigned by deploymentPlanner");
                         }
                         recreateVols.add(vol);
                     } else {
-                        throw new StorageUnavailableException("Volume " + vol + " is not available on the storage pool.", pool.getId());
+                        if (s_logger.isDebugEnabled()) {
+                            s_logger.debug("Volume " + vol + " is not recreatable! Cannot create storagepool...");
+                        }
+                        throw new StorageUnavailableException("Unable to create " + vol, assignedPool.getId());
+                        //copy volume usecase - not yet developed.
                     }
-                } else {
-                    if (s_logger.isDebugEnabled()) {
-                        s_logger.debug("Volume " + vol + " is ready.");
+        		}else{
+        		    if (s_logger.isDebugEnabled()) {
+                        s_logger.debug("Volume " + vol + " already has the poolId set to the assigned pool: " + assignedPool);
                     }
-                    vm.addDisk(new VolumeTO(vol, pool));
-                }
-            } else if (state == Volume.State.Allocated) {
-                if (s_logger.isDebugEnabled()) {
-                    s_logger.debug("Creating volume " + vol + " for the first time.");
-                }
-                recreateVols.add(vol);
-            } else if (state == Volume.State.Creating && vol.isRecreatable()) {
-                if (s_logger.isDebugEnabled()) {
-                    s_logger.debug("Re-creating volume " + vol + " as it was left with Creating state");
-                }
-                recreateVols.add(vol);
-            } else {
-                // the pool id here can potentially be null if the volume was never associated with any pool id (bug: 7899)
-                throw new StorageUnavailableException("Volume " + vol + " can not be used", vol.getPoolId() != null ? vol.getPoolId() : null);
-            }
+        			StoragePoolVO pool = _storagePoolDao.findById(vol.getPoolId());
+        			vm.addDisk(new VolumeTO(vol, pool));
+        		}
+        	}
         }
 
         for (VolumeVO vol : recreateVols) {
diff --git a/server/src/com/cloud/vm/VirtualMachineManagerImpl.java b/server/src/com/cloud/vm/VirtualMachineManagerImpl.java
index 42c2a2f4239..b8c7bccd667 100755
--- a/server/src/com/cloud/vm/VirtualMachineManagerImpl.java
+++ b/server/src/com/cloud/vm/VirtualMachineManagerImpl.java
@@ -576,6 +576,23 @@ public class VirtualMachineManagerImpl implements VirtualMachineManager, Listene
                 for (VolumeVO vol : vols) {
                     Volume.State state = vol.getState();
                     if (state == Volume.State.Ready) {
+                    	//make sure if this is a System VM, templateId is unchanged. If it is changed, let planner
+                    	//reassign pool for the volume
+                    	if(VirtualMachine.Type.DomainRouter.equals(vm.getType())
+                    			|| VirtualMachine.Type.ConsoleProxy.equals(vm.getType())
+                    			|| VirtualMachine.Type.SecondaryStorageVm.equals(vm.getType())){
+
+                    		Long volTemplateId = vol.getTemplateId();
+                    		if(volTemplateId != null && volTemplateId.longValue() != vm.getTemplateId()){
+                                if (s_logger.isDebugEnabled()) {
+                                    s_logger.debug("Root Volume " + vol + " of "+vm.getType().toString() +" System VM is ready, but volume's templateId does not match the VM, updating templateId and reassigning a new pool");
+                                }
+                    			vol.setTemplateId(vm.getTemplateId());
+                    			_volsDao.update(vol.getId(), vol);
+                    			continue;
+                    		}
+
+                    	}
                         StoragePoolVO pool = _storagePoolDao.findById(vol.getPoolId());
                         if (!pool.isInMaintenance()) {
                             long rootVolDcId = pool.getDataCenterId();