I am new to blade server? Can anyone tell me about this:
How is resource being allocated to machines under blade server?
I have a RHEL machine on blade server which shows 6 Processor, 16GB RAM.
I have a application running on this Linux Box but is performance is slow.
I wonder if it could be memory issue?
Do Blade server similar to XEN Virtual Server and linux machine like which I have is similar to Instance?
Pls Clarify.

a blade server is just a server that obtains some physical resources (power, cd, usb, nic) via a shared chassis. This is of no interest / knowledge to the server itself, and the Operating system would have no idea it's on a blade, as it performs exactly the same as a normal server, because it *IS*.

Well, it could be. Mind you, given the amount of info that you give, it could be almost anything else too.
As far as I understand the question, no. But then, I don't really understand the question.

As stated previously 'blade server' is a matter of packaging, a blade server is effectively a normal server in a blade-shaped box. So asking whether blade servers do something that normal servers do not is similar to asking whether white servers do something that black servers do not (well, it could make a difference to cooling...or, with blade servers, how big a disk subsystem you could fit).