Thanks to Debian Administration, The Debian User feels the love of Xen.
Read the blog entry here
What I did is the following: I took our old former firewall machine at the company, a Celeron 1100 with 512MB of main memory, and installed Etch onto it. When partitioning the hard drive, I set up LVM for pretty much everything, including a 50GB volume for a /vmachines directory. When tasksel jumped in and asked about packages to install, I told it: none at all.