Hi folks!
I also installed xen and it works fine for me.
Have you ever tried to wait some secoonds until boot continues? My xen config file looks like: ---- kernel="/boot/vmlinuz-2.6-xen" memory=640 name="fedora1" nics=1 disk=['file:/opt/xen/fedora1.img,sda1,w' , file:/opt/xen/fedora1.swap.img,sda2,w'] root="/dev/sda1" extra="ro selinux=0 3" hostname="fedora" vcpus=1 ----
Works just fine ....
Hope this helps Wolfi