5dollarwhitebox (?) has made a howto about Linux-Vserver on Debian Sarge-
The full tutorial is here:
Linux-VServer allows you to create virtual private servers and security contexts which operate like a normal Linux server, but allow many independent servers to be run simultaneously in one box at full speed. All services, such as ssh, mail, Web, and databases, can be started on such a VPS, without modification, just like on any real server. Each virtual server has its own user account database and root password and doesn't interfere with other virtual servers.