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Xen 3.0 Virtualization Interface Guide
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3.1 Memory Allocation

As well as allocating a portion of physical memory for its own private use, Xen also reserves s small fixed portion of every virtual address space. This is located in the top 64MB on 32-bit systems, the top 168MB on PAE systems, and a larger portion in the middle of the address space on 64-bit systems. Unreserved physical memory is available for allocation to domains at a page granularity. Xen tracks the ownership and use of each page, which allows it to enforce secure partitioning between domains.

Each domain has a maximum and current physical memory allocation. A guest OS may run a `balloon driver' to dynamically adjust its current memory allocation up to its limit.

Xen 3.0 Virtualization Interface Guide
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  Published under the terms of the GNU General Public License Design by Interspire