I am pleased to add another image type to the live demos, check it out. The GNOME Live xen image, enables xdmcp for remote login. To try it out, here are some instructions, which assume you have a running Xen infrastructure already in place.
vi /etc/xen/gnome
bootloader = '/usr/bin/pygrub'
memory = 256
name = 'gnome'
vif = [ 'mac=00:16:3e:00:03:45' ]
disk = [ 'tap:aio:/export/xen/gnome/foresight-2.18.1-x86.img,xvda,w' ]
If you are on the same network as your virtual machine, you can use broadcast to find your host.
Xephyr -host-cursor -terminate -broadcast :1 -screen 1024x768
Or, you can specify the IP or hostname to connect to.
Xephyr -host-cursor -terminate -query 192.168.0.253 :1 -screen 1024x768