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xen-users
Re: [Xen-users] Re: Considering Xen for Ubuntu VPS environment
Quote: "Virtuozzo is created and distributed by SWSoft. In 2006, SWsoft released the core of Virtuozzo under the GNU GPL (General Public License) in an open-source project called OpenVZ."
So, Virtuozzo/OpenVZ is operating system level virtualisation. Each "Container" runs on the same Linux kernel.
Xen is hypervisor based virtualisation, which means it is far more flexible, and doesn't have most of the issues you've raised. Each VM has its own kernel.
Regards,
David
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