A pre-ionized medium created by a capillary discharge results in more efficient use of laser energy in high-order harmonic generation (HHG) from ions. It extends the cutoff photon energy, and reduces the distortion of the laser pulse as it propagates down the waveguide. The observed enhancements result from a combination of reduced ionization energy loss and reduced ionization-induced defocusing of the driving laser as well as waveguiding of the driving laser pulse. The discharge plasma also provides a means to spectrally tune the harmonics by tailoring the initial level of ionization of the medium.