So far I have a Hoary Hedgehog (8.04, alpha) Ubuntu as a kvm host, and
two of the same as guest, a 512 and a 1024 MB, inside a 2 GB box. It
survived an overnight prime95 test.

The good:
Apparently nice CPU, memory and disk performance.
Very clean from a Unix perspective
Emulated Cirrus Logic video is OK for a GUI desktop.

The bad:
kvm eats up the entire memory allocated for the host, plus some
overhead, unlike VMware which seems to only allocate memory that was
allocated by the guest.

Network configuration is confusing - I haven't tried it out yet. By
default, the guest can only connect to the host, in that one
direction.
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