Arch Linux works well as a vmd guest. Some notes about my experiences 
installing the system:

* The Arch installation can be started from the serial console, see:
  https://wiki.archlinux.org/index.php/Working_with_the_serial_console
  #Installing_Arch_Linux_using_the_serial_console
  However, the installation still tends to be unstable, due to unreliable
  downloads (which has been discussed earlier). Until this is fixed, the 
  installation can be run in QEMU, or in a guest under Linux/KVM (as is
  currently required by distributions with graphical install).

* Syslinux has to be used as bootloader, and serial console should be
  enabled: https://wiki.archlinux.org/index.php/Syslinux#Serial_console
  Moreover, the generated config has to be edited to point to the
  correct root device, and if Ext4 is used as root file system, it must
  not be 64bit (which is enabled by default when the file system is
  created): http://www.syslinux.org/wiki/index.php?title=Filesystem

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