Xen + libvirt is an interesting choice of toolstack, it makes network-management and guest installation easier and enables graphical remote management of the VMs. However, Debian Wheezy has several issues, I have never been able to boot something using xen + virt-manager, so I strongly recommend Jessie which is pretty stable. In this howto, I use two servers : xen-01 (for Xen + libvirt, headless) and xen-console (for virt-manager, with Xfce desktop). You can use virtual or physical machines but I had issues with VMware because Xen keeps freezing when you try to boot a domU. However, Virtualbox works fine.