Just for summary, the advantages of having the streaming inside a domU are:
1. You move the network receive and the image decompression / decryption
(if you're using that) off dom0's CPU and onto the domU's. Dom0 CPU is a
scarce resource, even in the new release of XenServer with 4 CPUs
I'm actually not too worried about option B. We've been using this method
in production for a while and haven't ran into too many problems. We've
heavily tested four streams (builds) at a time with 2 VCPUs in dom0 and it
works pretty well. We did see major starvation issues with dom0 when we
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