Fedora Lame Virtualization?

First time I used virtualization was long long ago when I was in fact on windows and booted linux inside it. Then I switched completely over to linux and had trouble doing the reverse - running windows inside linux. Sure wine was around at that time but it's not exactly a virtualization system and it could only run windows 95/98 applications reliably. Then I laid off the subject for many years until I ran into Qemu and PearPC about four years ago.

Since then I managed to install many different flavours of linux and other operating systems through Qemu and generally managed to make use of the installer DVD/CD for the setup. Qemu has come a long way since then and now ships on the Fedora DVD - which has a sophisticated virtualization management system. Well looks sophisticated but it's lame - you can't use your installation media to set up a guest system.  You need to install over the network.

I've come so far in fact with out using the xen kernel - the system wouldn't boot with it.