I haven't tried RHEL4U5 myself ... John Sanabria was using koan for
virt a while back. I'm not sure what platform.
It might be interesting to see what you get for "virsh list" and "virt
dumpxml N" where N is 0 up to the number of virtual machines you have
installed. (You may have to install virsh). Also I would be
interested in seeing the tree of /var/lib/koan.
Apparently it's coded as /var/koan. Told you wrong there.
It's hard to tell from the above description, but it could be that you
have a lot of paused/crashed domains that are causing problems for
whatever reason. I certaintly don't have any reason as to why some
machines would go interactive when others don't, especially during
install -- I wouldn't think ram consumption would play a role there.
I'm about to put some heavy testing on koan's virt management support
for something I'm working on at the moment, so hopefully I can provide
some more insight there as well. My apologies on not being more
helpful with remote debugging!