I've been able to start the KVM QEMU in a VServer guest without any
problems, and with prettu much default configuration, i.e. no special
[b]caps were needed (haven't quite figured out the networking part
though).
All I needed was a /dev/kvm in a guest (and the kvm kernel modules loaded,
as well as a VT capable CPU, of course).
I wonder if anyone else here has played with this? What are security
implications of a guest having a /dev/kvm? Can a guest with access to
/dev/kvm wreak havoc on other KVM's (possibly running in other guests or
in the host)?
Grisha