Comment 1 for bug 463023

This seems like a regression in Karmic because the -server kernel in Jaunty had the necessary _XEN kernel configuration for pvops booting. I was using the linux-server-image package and the upgrade to Karmic broke all of my 32-bit virtual machines.

The 64-bit kernels in Karmic can still run in a Xen domU, however, so migrating from i386 to AMD64 could be an option for you.