The Xen hypervisor runs in 64-bit mode, and supports up to 128GB of host memory. All Windows VMs also support up to 32GB of memory per VM, and have improved network performance. The control domain is based on a 32-bit EL5-based distribution.

VMs running unmodified Windows Server 2003 SP2 in 64-bit mode are supported (on computers with hardware virtualization support - Intel VT or AMD-V CPUs)

VMs running unmodified Windows 2000 support multiple virtual CPUs and use the ACPI APIC Hardware Abstraction Layer (HAL).

Red Hat Enterprise Linux 5 and SUSE Enterprise Linux 10 may be installed directly from vendor network repositories using the vendor-provided Xen kernels, and thus no longer require hardware-assisted virtualization during the installation process.

XenServer hosts with homogenous hardware can now be combined into pools of up to 16 hosts, with shared storage and live relocation of Linux and Windows VMs using XenMotion™.

Windows VM support hot-plugging of disks and network interfaces while they are running, subject to support from the operating system.

The Xen Application Programming Interface is available on the XenServer host. XenCenter is a native Windows interface which provides an easy-to-use graphical interface, and a complete Command-Line Interface (with tab-completion on Linux hosts) is also provided.

An extensible storage manager which supports a block-backed volume manager, a file-backed VHD-based backend, and iSCSI-based volumes. These can operate as local repositories or as shared storage as part of a pool.