diff --git a/apps/kubevirt-vms/ci1.yaml b/apps/kubevirt-vms/ci1.yaml
index a0ff135..86bd856 100644
--- a/apps/kubevirt-vms/ci1.yaml
+++ b/apps/kubevirt-vms/ci1.yaml
@@ -6,14 +6,21 @@
 # `bluejay-ws-sandbox-1` runner placeholder. Andrew explicitly does NOT want
 # BLUEJAY-WS registered as a runner (workstation has personal/operator state).
 #
-# Status (2026-05-08): STAGED ONLY — DO NOT APPLY without operator review.
-# See docs/infrastructure/windows-server-build-runner-plan.md "Phase 1 readiness gate".
+# Status (2026-05-08): LIVE — Phase 1 prereqs satisfied:
+#   * Multus CNI v4.2.2 thick-plugin DaemonSet running on all 3 RKE2 nodes
+#     (apps/multus/multus.yaml; ApplicationSet `infra-multus` Synced/Healthy)
+#   * CDI v1.65.0 operator + CR Deployed (apps/cdi/; ApplicationSet
+#     `infra-cdi` Synced/Healthy; uploadproxy reachable via kubectl port-forward)
+#   * Windows Server 2025 ISO uploaded via CDI virtctl image-upload to
+#     PVC windows-server-2025-iso (7.7 GiB → 10Gi PVC, Bound, Upload Complete)
+#   * Local Administrator password generated, stored in 1Password vault
+#     IAmWorkin (qaphopopkryhbg353ukzhhuqoq) item id h3ix4mgfk65gmkcmvh6ly3d3hu
+#   * NetworkAttachmentDefinition prod-vlan57 registered (apps/kubevirt-vms/
+#     prod-vlan57-nad.yaml). VM still uses pod-network masquerade until Phase 1.5
+#     host bridge work lands (Puppet br-prod + enp86s0.57); switching is a
+#     one-line YAML edit + git push.
 #
-# Prerequisites that MUST be satisfied first:
-#   1. Windows Server 2025 ISO populated into the `windows-server-2025-iso` PVC
-#      (operator interactive step — Microsoft Evaluation Center download).
-#   2. Either Multus + PROD VLAN NAD (preferred) OR pod-network only (this YAML).
-#   3. KubeVirt CR feature gates: none required for non-persistent vTPM.
+# See docs/infrastructure/windows-server-build-runner-plan.md "Phase 1 readiness gate".
 #
 # Network choice in this draft: **pod-network fallback** (Calico default).
 # Outbound-only is fine for the Updater Sandbox E2E runner workload (the runner
@@ -42,21 +49,31 @@ metadata:
     pod-security.kubernetes.io/enforce: privileged
 
 ---
-# ISO PVC — operator must populate this before applying the VM manifest.
-# Population paths (see plan doc "Phase 1 readiness gate", section 2):
-#   Path A — manual upload via helper pod + kubectl cp
-#   Path B — install CDI, then DataVolume HTTP import
+# ISO PVC — populated via CDI virtctl image-upload (CDI is now installed).
+# Population workflow (LIVE 2026-05-08):
+#   1. virtctl --kubeconfig $env:USERPROFILE\.kube\rke2.yaml image-upload pvc \
+#        windows-server-2025-iso -n kubevirt-vms \
+#        --image-path "$env:USERPROFILE\Downloads\en-us_windows_server_2025_updated_march_2026_x64_dvd_8e06425a.iso" \
+#        --size 10Gi --storage-class longhorn --access-mode ReadWriteOnce \
+#        --uploadproxy-url https://cdi-uploadproxy.cdi.svc:443 --insecure
+#   (--uploadproxy-url uses port-forward in practice: see plan doc Phase 1.5.)
+#
+# Note: CDI's PVC creation hooks add cdi.kubevirt.io/storage.* annotations
+# automatically. The ISO source file is 7.7GB → request 10Gi for headroom.
 apiVersion: v1
 kind: PersistentVolumeClaim
 metadata:
   name: windows-server-2025-iso
   namespace: kubevirt-vms
+  labels:
+    app: ci-runner
+    flowercore.io/managed-by: bluejay-infra
 spec:
   accessModes:
     - ReadWriteOnce          # Bump to ReadOnlyMany after population for multi-VM use
   resources:
     requests:
-      storage: 6Gi
+      storage: 10Gi          # Bumped from 6Gi (Server 2025 ISO is 7.7GB)
   storageClassName: longhorn
 
 ---
@@ -220,10 +237,16 @@ data:
           </OOBE>
           <UserAccounts>
             <AdministratorPassword>
-              <!-- IMPORTANT: replace the Value below with a real password BEFORE applying.
-                   Generate via: $pw = "YourPasswordHere" + "AdministratorPassword";
-                                 [Convert]::ToBase64String([Text.Encoding]::Unicode.GetBytes($pw)) -->
-              <Value>UABMAEEAQwBFAEgATwBMAEQARQBSAEEAZABtAGkAbgBpAHMAdAByAGEAdABvAHIAUABhAHMAcwB3AG8AcgBkAA==</Value>
+              <!-- Real password is in 1Password — vault qaphopopkryhbg353ukzhhuqoq,
+                   item id h3ix4mgfk65gmkcmvh6ly3d3hu, title:
+                   "ci1 Administrator (Windows Server 2025 KubeVirt VM)".
+                   Field "autounattend AdministratorPassword Value (UTF-16-LE base64)"
+                   matches the Value below.
+                   To rotate: regenerate, recompute base64
+                     $combined = $pw + "AdministratorPassword"
+                     [Convert]::ToBase64String([Text.Encoding]::Unicode.GetBytes($combined))
+                   then update both 1P item AND this Value field, recreate VM. -->
+              <Value>bAA3AGsANABOAHcAcgBMAG4AeQBTAHUAYgBBAHQAaQBzAFUAcAB6AEMAWQAhADkAYQBCAEEAZABtAGkAbgBpAHMAdAByAGEAdABvAHIAUABhAHMAcwB3AG8AcgBkAA==</Value>
               <PlainText>false</PlainText>
             </AdministratorPassword>
           </UserAccounts>
@@ -260,7 +283,7 @@ metadata:
     role: github-actions-runner
     flowercore.io/managed-by: bluejay-infra
 spec:
-  running: false   # Set to true after operator approves + ISO loaded
+  running: true   # LIVE — ISO uploaded 2026-05-08, password in 1P
   template:
     metadata:
       labels: