diff --git a/bin/xen-create-image b/bin/xen-create-image
index 707a60b..1c0675e 100755
--- a/bin/xen-create-image
+++ b/bin/xen-create-image
@@ -2877,7 +2877,7 @@ sub testLoopbackModule
                  "Loopback module not loaded and you're using loopback images\n"
             );
             logprint("Run the following to load the module:\n\n");
-            logprint("modprobe loop loop_max=255\n\n");
+            logprint("modprobe loop max_loop=255\n\n");
         }
     }
 }
diff --git a/debian/changelog b/debian/changelog
index 36d9919..a2cbcfb 100644
--- a/debian/changelog
+++ b/debian/changelog
@@ -9,6 +9,8 @@ xen-tools (4.2~rc1-1) UNRELEASED; urgency=low
     - Mounts not only /proc but also /dev/pts automatically before running
       any customisation hooks (Closes: #588783)
     - Uses apt-config to parse Dom0's apt.conf. (Closes: #560011)
+    - Fixes wrong loop module parameter syntax in warning. Thanks to
+      Daniel Baumann for spotting this. (Closes: #516902)
   * Bump Standards-Version to 3.9.1 (no changes)
 
  -- Axel Beckert <abe@debian.org>  Wed, 02 Jun 2010 18:10:34 +0200