Did you say RHEL 3 update 5? There is no paravirtualized kernel for any RHEL 3 update. Fully virtualized is your only option. RHEL 4.5 (just released) is paravirtualizable, as well as RHEL 5.0.
Yes that is something which i want to try now that have early beta of that kernel , need to figure out how to make a vm out of that , any ideas regards Satya