CentOS Virtualization

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I would like to run a fully licensed virtual machine instance of Windows Server 2008 on a CentOS 6 Linux server with plenty of hardware resources, I have to setup both host and VM from scratch.

Should I use paravirtualization or hardware-assisted full-virtualization?

According to some write-ups, paravirtualization is preferred as it is faster, however paravirtualization requires both host (dom0) and guests (domUs) have to run a ported XEN kernel. I've also read that CentOS 6x doesn't support dom0.

By using KVM the process seems fairly straight forward, however KVM currently only support hardware-assisted full-virtualization, will this have a major effect on the Windows Server systems performance?, like I said it is mostly used as a file server and host for Windows only software used in the company, like Softline Pastel and VIP Payroll.
 
Any reason why you don't want to install ESXi and run both as VMs?
 
Prefer Xenserver over ESXi myself,but yeah actual purpose-built hypervisors ftw
 
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