Hi Manuel,

 > Yes, something is wrong here. I suspect looping in kernel. You can try
 > entering ddb (+++++) and see where it is (using 'tr' at db>)

Eventually I got it going. I disabled the HT and SMP on dom0 again, 
afterwards I had set up networking. Since then I log into the VM 
directly and it behaves nicely. ;)

One thing I noticed though and it's I/O related. Extracting pkgsrc under 
/usr stopped several times. It looked like crashed but eventually it 
didn't. I use FFSv2 and softdep is enabled. I have also exported a 30GB 
LVM managed block device into my VM for squid cache. It's xbd1e after 
labelling. The newfs -i 2 -O 1 /dev/xbd1e has been running for 5 hours 
and I have no idea why it's taking so long...? I'm using real chunks of 
my real storage not a file backend. Is it normal?

Thanks

Ivan