I can see that Windows Loads in VM  and when I run in safe mode it reaches until loading
 
multi(0)\disk(0)\rdisk(0)\partition(1)\Windows\system32\drivers\Mup.sys
 
After this it hangs.Attached is the qemulog.
 
Note : These VM's are running out of a complete disk (/dev/sdb), which has working installation of Windows on it!
 
I am running FC5 along with Xen 3.0.2 (tried unstable too) on Intel XEON VT-x server!
 
Any help would be great! Rafiq