Xen lets you create guest operating systems (*nix operating systems like Linux and FreeBSD), so called “virtual machines” or domUs, under a host operating system (dom0). Using Xen you can separate your applications into different virtual machines that are totally independent from each other (e.g. a virtual machine for a mail server, a virtual machine for a high-traffic web site, another virtual machine that serves your customers’ web sites, a virtual machine for DNS, etc.), but still use the same hardware. This saves money, and what is even more important, it’s more secure.
Here is a good Xen tutorial that can help you from startup : http://www.howtoforge.com/installing-xen-on-centos-5.2-i386