Fedora Linux distribution is slowly integrating virtualization as basic OS capability.
In Fedora Core 5 Red Hat initially integrated Xen hypervisor, followed by a basic GUI for it in Fedora Core 6: virt-manager. Now new version 7 includes Linux kernel 2.6.21 and then offers out-of-the-box its second virtualization platform: KVM.
Integration of kernel 2.6.21 also implies Fedora 7 sports paravirt-ops framework and VMware VMI interface. This means new VMware Workstation 6.0 should be able to run it as a para-virtualized guest (with a major performance boost).
Last but not least Fedora 7 updated embedded Xen package to new version 3.1 (formerly 3.0.5).
Read full release notes about virtualization packages here or download the distribution here.