Linux / Xen Server freezes

Short answer: you can't. Ports below 1024 can be opened only by root. As per comment - well, you can, using CAP_NET_BIND_SERVICE, but that approach, applied to java bin will make any java program to be run with this setting, which is undesirable, if not a security risk.

The long answer: you can redirect connections on port 80 to some other port you can open as normal user.

Run as root:

# iptables -t nat -A PREROUTING -p tcp --dport 80 -j REDIRECT --to-port 8080

As loopback devices (like localhost) do not use the prerouting rules, if you need to use localhost, etc., add this rule as well (thanks @Francesco):

# iptables -t nat -I OUTPUT -p tcp -d 127.0.0.1 --dport 80 -j REDIRECT --to-ports 8080

NOTE: The above solution is not well suited for multi-user systems, as any user can open port 8080 (or any other high port you decide to use), thus intercepting the traffic. (Credits to CesarB).

EDIT: as per comment question - to delete the above rule:

# iptables -t nat --line-numbers -n -L

This will output something like:

Chain PREROUTING (policy ACCEPT)
num  target     prot opt source               destination         
1    REDIRECT   tcp  --  0.0.0.0/0            0.0.0.0/0           tcp dpt:8080 redir ports 8088
2    REDIRECT   tcp  --  0.0.0.0/0            0.0.0.0/0           tcp dpt:80 redir ports 8080

The rule you are interested in is nr. 2, so to delete it:

# iptables -t nat -D PREROUTING 2

Xen supported virtualization types

Xen supports running two different types of guests. Xen guests are often called as domUs (unprivileged domains). Both guest types (PV, HVM) can be used at the same time on a single Xen system.

Xen Paravirtualization (PV)

Paravirtualization is an efficient and lightweight virtualization technique introduced by Xen, later adopted also by other virtualization solutions. Paravirtualization doesn't require virtualization extensions from the host CPU. However paravirtualized guests require special kernel that is ported to run natively on Xen, so the guests are aware of the hypervisor and can run efficiently without emulation or virtual emulated hardware. Xen PV guest kernels exist for Linux, NetBSD, FreeBSD, OpenSolaris and Novell Netware operating systems.

PV guests don't have any kind of virtual emulated hardware, but graphical console is still possible using guest pvfb (paravirtual framebuffer). PV guest graphical console can be viewed using VNC client, or Redhat's virt-viewer. There's a separate VNC server in dom0 for each guest's PVFB.

Upstream kernel.org Linux kernels since Linux 2.6.24 include Xen PV guest (domU) support based on the Linux pvops framework, so every upstream Linux kernel can be automatically used as Xen PV guest kernel without any additional patches or modifications.

See XenParavirtOps wiki page for more information about Linux pvops Xen support.

Xen Full virtualization (HVM)

Fully virtualized aka HVM (Hardware Virtual Machine) guests require CPU virtualization extensions from the host CPU (Intel VT, AMD-V). Xen uses modified version of Qemu to emulate full PC hardware, including BIOS, IDE disk controller, VGA graphic adapter, USB controller, network adapter etc for HVM guests. CPU virtualization extensions are used to boost performance of the emulation. Fully virtualized guests don't require special kernel, so for example Windows operating systems can be used as Xen HVM guest. Fully virtualized guests are usually slower than paravirtualized guests, because of the required emulation.

To boost performance fully virtualized HVM guests can use special paravirtual device drivers to bypass the emulation for disk and network IO. Xen Windows HVM guests can use the opensource GPLPV drivers. See XenLinuxPVonHVMdrivers wiki page for more information about Xen PV-on-HVM drivers for Linux HVM guests.

This is from http://wiki.xenproject.org/wiki/XenOverview

KVM is not Xen at all, it is another technology, where KVM is a Linux native kernel module and not an additional kernel, like Xen. Which makes KVM a better design. the downside here is that KVM is newer than Xen, so it might be lacking some of the features.