i have had the same issue, the PAE version helped in my case email@example.com wrote:
I think you need the pae hypervisor IIRC... xen-hypervisor-3.0.3-1-i386-paeapt-cache show says: [...] | This version of the hypervisor is built with PAE enabled, in order | to support systems with more than 4GB of memory. If you have less | than that you should probably choose the non -pae version. So I guess that's not the issue. Thx anyway!