Hello,

This turned out to be a bug with Xen directly. The problem happens when
you have a PCI express graphics card in the system. Even if you're not
passing the graphics card with VT-d, it still hangs the system. Removing
it and using the integrated graphics, things work fine. I've e-mailed on
xen-devel and they are aware of this.

-Bryan

-- 
Enabling VT-d causes hang on boot in Xen on Hardy
https://bugs.launchpad.net/bugs/224880
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