Some updates here: the good news is that I am able to reproduce this on
a local CentOS based installation. Bad news so far is that the DomU
crashes so quickly that I get no output at all, even when directly
attaching to the console on "xm create".

But at least I found a lead. The crashes happen if the guest memory is
less than 1G and not dividable by 4. So 615M crashes, but 616 will boot
(or 612 and so on). There is also a visible change in the memory layout
presented to Linux. While previously the max_pfn was directly used to
create an e820 map, there is now some additional 8M added in the data
returned by the memory hypercall. I cannot say right now whether that
directly relates to the crash or not but one can see that starting a
guest with mem=616, Linux will report 624M of memory. There is a lot of
shifting around and recalculating going on which I have yet to
understand.

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https://bugs.launchpad.net/bugs/686692

Title:
  natty kernel does not boot on ec2 t1.micro

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