This is a serious regression.

My testing suggests that this issue affects any guest which is assigned
more than 578MB of RAM.  (A guest configured in XenCenter with 579MB of
RAM exhibits the fault, whereas the same guest reconfigured with 578MB
boots fine.)

Victor, can you check whether reducing its RAM allocation allows your
guest to boot?

The failure mode is that the guest spins on 100% CPU on the first core,
before any kernel messages are printed (even without the "quiet"
option).

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https://bugs.launchpad.net/bugs/791513

Title:
  After upgrade to kernel 2.6.32.32.38 ubuntu don't start in Xenserver

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