The same VM host describe in comment #38 is now running 2.6.38-12.51.1~ppa1~lucid1 and the 32-bit RHEL-compatible VM guest does not hang while using 2 CPUs anymore.
The VM host is also running two Ubuntu 10.04 and one Ubuntu 11.04 VM guests OK as well.
The same VM host describe in comment #38 is now running 2.6.38- 12.51.1~ ppa1~lucid1 and the 32-bit RHEL-compatible VM guest does not hang while using 2 CPUs anymore.
The VM host is also running two Ubuntu 10.04 and one Ubuntu 11.04 VM guests OK as well.