Daniel,
You shall check if XEN kernel properly enables AES-NI instructions. Unfortunately, this is typical problem with virtualized environments, but you can start with generic build and switch off AES-NI by replacing aesni=on with aesni=off in mining params (consult readme.txt for more details).
If that works, try using another build while keeping aesni=off (you shall start with Sandy Bridge build, and fall back to Nehalem if that one fails). Then try making aesni=on, that brings major speedup but requires proper AES-NI support on the host.
Note that some CPU feqtures, incl. AES-NI, can be disabled in BIOS.
As of CPU scheduling, pinning and isolation, I am using either numactl (if available) or taskset. Another alternative will be to spin up additional lightweight guest and run yam from inside that guest.
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