I posted my thoughts about how this could work here: https://www.redhat.com/archives/libguestfs/2011-January/msg00066.html
Rich. PS. You don't need to be a subscriber to post to that list -- I manually triage any messages sent by non-subscribers. -- Richard Jones, Virtualization Group, Red Hat http://people.redhat.com/~rjones virt-p2v converts physical machines to virtual machines. Boot with a live CD or over the network (PXE) and turn machines into Xen guests. http://et.redhat.com/~rjones/virt-p2v