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I participated it bug thread regarding virt-install failure on Ubuntu 8.04 Server ( Xen 3.2 was still there, the last xen enabled release) . It was a while ago and i don't remember the number . There was no valuable answer at all. Canonical seemed to forget what the Xen was. If i am wrong about that and latter they fixed libvirt to support Xen, it would be fine. You may post it as "bug" or "RFE" on Launchpad and see what they respond. In meantime i am aware of only two Libvirt's implementations supporting Xen 3.4.2.
1. OpenSolaris 2010-02 xVM 3.4.2 ( libvirt 0.7.0) There is a good chance that in 1-2 months it might become enterprise class system, regardless ongoing issues with VNC on
build 130. 2010-02 should be build 132. 2. F12,F11 Xen 3.4.2(1) ( libvirt 0.7.1-15), but no enterprise class kernel to support Dom0 for hardly predictable period of time.