Thanks marvin and others for pointing me to xen.

Installing xen, configuring grub and installing a new OS was easy! just 
had to read the user manual. too bad my server only has 1GB of ram, and 
with a running BIND + httpd, my win2k3 AD conked out when I tried to 
restore it from backup (or maybe it was because the devices were not the 
same..) Nevertheless, I love how east it was to deploy a virtual server.

I have been scouring the web for papers on securing xen based systems, 
may I ask your opinion regarding the matter.
Or is securing the host Dom0 enough? provided I also secure the guest 
OS. is this secure enough to be placed in the DMZ zone?

I have a bastion-host firewall script running on the guest OS (at least 
the linux guest) as well as a stricter firewall script on the host, 
aside from running an endian fw. I just dont want to throw a fit, when 
come monday, I see that all the 3 days of no sleep - configuring and 
tinkering with this project goes down because of a system attack.. 
huhuhu... :-(
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