Fully-virtualized guests (HVM/Intel-VT/AMD-V)
To run fully virtualized guests, host CPU support is needed. This is typically referred to as Intel VT, or AMD-V. Xen uses a generic 'HVM' layer to support both CPU vendors. To check for Intel VT support look for the 'vmx' flag, or for AMD-V support check for 'svm' flag:
If you have the 'svm' or 'vmx' flags, then your CPU is capable of fully-virt, however, a large number of machines disable this in the BIOS as shipped from the factory. Thus to see if it is enabled we need to check for the 'hvm-???' flags in the hypervisor capability set:
# cat /sys/hypervisor/properties/capabilities
xen-3.0-x86_64 hvm-3.0-x86_32 hvm-3.0-x86_32p hvm-3.0-x86_64
If the above shows one or more 'hvm-???' flags then everything is working normally. If no hvm is shown, then reboot, go into the BIOS & look for a setting related to 'Virtualization' - every BIOS manufacturer calls the setting by a different name. If you are really very unlucky, it is possible the BIOS does not have a virtualization option. In this case the only otion is to bug your hardware vendor for an updated BIOS