Immediately after loading xen.gz boot fails with following message: Error message: =========== Panic on CPU 0: Xen BUG at i387.c:159 It is occuring only on Intel CPUs. It seems it is a known bug, fixed in 4.0.2rc1-pre, but as of now, there's a workaround, one should add "no-xsave" as an option to Xen command line in grub.conf Perhaps ebuild should contain a message about it.
Xen 4.1 in tree. Please test with it and reopen if it doesnt work