I am trying to figure out the significance of the "Initial memory" setting
of a VM. Does it make any difference? For example VM A and B. A is
configured with 500 MB initial memory and 2000 MB Max memory. VM B is
configured with 1000 MB Inintial memory and also 2000 MB Max memory.

I think that at present a qube will start with maxmem and then balloon
down to initial memory. If memory is set too low the qube wont start,
as you say.
I don't think that memory allocated will drop below "Initial memory", so
if you are tight on RAM it makes sense to reduce it.

Funny, I thought it is the opposite. The VM will start with the initial memory and balloon up to max or back down to initial (minimum) and in between. I didn't think it will start with max and balloon down. It does help shed some light, thank you.

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