Most likely you create VM and booting from CD. If that's right , there is a mismatch between template you selected for this VM and type system you trying to install. Make sure you select correct OS type. XenServer is trying to boot your VM in PV mode and to do so needs to find kernel on cd , for supported system XenServer knows the paths to kernel on CD. In your case kernel is missing in expected path what suggest wrong template for this CD.
Radek Ĺmigielski
