Xen command xl doesn’t create a vm but xend/xm does

You might want to look into the xen-tools package which if you specify --pygrub on the xen-create-image command it will embed the kernel/initrd within the guest disk image which may make it easier for you to transfer guest images between systems.

I finally found the solution for this issue.

There are different procedures for getting xm console work in paravirtualized guest and fully virtualized get. My machine was fully virtualized and I was trying solution of paravirtualized guest so it was not working.

So to make xm console work in Fully virtualized guest do the following procedure:

1.Edit guest configuration file and add "serial = pty"

2.Then edit guest configuration file and add console=ttyS0 to kernel line in grub and add "co:2345:respawn:/sbin/agetty ttyS0 9600 vt100-nav" to your /etc/inittab.

And for Paravirtualized do the following procedure:

1.Add the two paramaters console=tty0 console=xvc0 to kernel line in grub.conf as follows

 kernel /vmlinuz-2.6.18-53.el5xen ro root=/dev/VolGroup00/LogVol00 rhgb quiet console=tty0 console=xvc0

2. To get a log in prompt on the console, please add the below line to your /etc/inittab before ttyx defenitions.

   co:2345:respawn:/sbin/agetty xvc0 9600 vt100-nav

Once you do "xm console ", you may have to press "return" to get the console.