Xen users - Jun 2006 - Strategies for running many VPS servers?

Hi,

I''m going to setup a new server which will be running some large and
some smaller VPS servers.

The VPS servers will be running on a Dual CPU system and some of the VPS
servers should be able to utilize both processors - is it possible to
enable one or more VPS servers to utilize both CPUs?

Other than that it is pretty clear how the host server should be setup,
except for file system management.  Which strategy would you recommend
for maximum reliability?  Filesystems mounted by loopback, dedicated
partitions or something else?  Flexibility (ability to upgrade and
downgrade diskspace) would be nice.  Ability to backup filesystems in a
somewhat consistent state is a must.

This system will be built using Xen 3.0, is that a good idea?

Thanks in advance,

Morten

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