I have a Xen machine running Ubuntu Hardy (8.04.1). I created a guest that was also Hardy, with xen-tools. But after booting it up, the login prompt wouldn’t appear. It would get as far as:
1 2 3
And then just not show anything. The VM wasn’t hung, just the login prompt didin’t display.
After googling to no avail, I lucked out with button mashing some options in my <vm>.cfg file. Adding this to the end of my <vm>.cfg made it work: