1. How can I tell for sure that my machine (32 bit AMD server) will work with Xen virtualization?
There are 2 types of virtualization - Full and Para. Para virtualization doesn't require any special hardware and in theory should work on any hardware.
2. What is the right number for rpm needed (is it 5)?
Good place to start
http://www.redhat.com/docs/en-US/Red..._packages.html
3. Do I get the grub configuration with it or should i copy it under /etc
When you install Xen packages in RHEL, it modifies the GRUB and inserts kernel required for Xen. All you have to do is boot into the Xen based kernel.
4. Does it mean that after installation I have Xen server and all I need to do is to configure clients?
Yes, just boot into the Xen kernel and create para/full virtualized hosts.
One last thing, Xen has different names? Cause' I can see many names under the same subject (which is virtualization)
Xen has different products - based on the licensing/price etc. However, Xen is one way of achieving virtualization. There are other products available in the market like VMware and Hyper-V etc.