I installed Fedora 16 and then ran:

sudo yum install xen

Xen installed without errors and I rebooted. In the Grub2 list I selected
Xen 4.1.2 and then selected the option:

Fedora Linux, with Xen 4.1.2 and Linux 3.3.0-4.fc16.x86_64

The boot process starts (i notice that loading ramdisk is very short) and
then shortly thereafter the boot fails and the system reboots without any
error.

I tried checking the boot log but I'm not sure I'm looking at the right
log.

The only problem I see in the boot is

Started SYSV: sandbox, xguest and other apps that want to use pam_names$
Failed to start Xenstored - daemon managing xenstore file system
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