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You are explaining about virtual hardware support. Neither ATI and nVidia support virtual hardware. Virtual hardware is mainly used by servers and not by desktops or notebooks. It seems that both ATI and nVidia sees virtual hardware support as a luxury feature that home users does not yet have.
Xen and other virtual machine software does not yet support 3D rendering. Sure VMware Workstation and VMware Fusion supports 3D but it is very limited.
You can still compile the kernel with virtual hardware support, but not with everything such as guest support.
If you are going to use virtual machine software, AMD processors are better compared to Intel processors.
IMHO, setting up a notebook computer with Linux is not worth it. It takes long days and months to get Linux working OK on a notebook computer. Using ATI graphics makes it even worst. For notebooks, I suggest Mac OS X since it includes Unix commands and uses SAMBA for file sharing and CUPS for printing. I suggest Macbook Pro 15 inch. After doing a re-install of Gentoo several months ago, I am still trying to figure out why the lamp does not turn on after putting the computer to sleep for the second time. Always on the second time, the lamp does not turn on. Linux is great for desktops and workstations, but it is pathetic on a notebook computer.
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