We run Xen on an RHEL 5 host with RHEL 5 paravirtualised guests.
In theory we are entitled to 4 free entitlemets for paravirtualised guests on each Xen host with the "Virtualisation" entitlement.
I have been banging my head off this for days now - and I just can't get the PV guests to connect to RHN without consuming a regular entitlement. Since we have 6 PV hosts, we're talking about needing to pay for up to 24 extra and un-needed entitlements - a LOT of money!
If anyone has managed to get this to work as it should, any help or insight would be greatly appreciated!