When you install new guests using virt-manager (or virt-install) tool(s) from Red Hat Enterprise Linux 5.1 with Virtualization, the guests configuration files (located in the /etc/xen directory) get modified and setup automatically. This configuration file example is for a para-virtualized guest:

name = "rhel5vm01"
memory = "2048"
disk = ['tap:aio:/xen/images/rhel5vm01.dsk,xvda,w',]
vif = ["type=ieomu, mac=00:16:3e:09:f0:12 bridge=xenbr0', 
       "type=ieomu, mac=00:16:3e:09:f0:13 ]
vnc = 1
vncunused = 1
uuid = "302bd9ce-4f60-fc67-9e40-7a77d9b4e1ed"
bootloader = "/usr/bin/pygrub"
vcpus=2
on_reboot = "restart"
on_crash = "restart"

Note that the serial="pty" is the default for the configuration file. This configuration file example is for a fully-virtualized guest:

name = "rhel5u5-86_64"
builder = "hvm"
memory = 500
disk = ['file:/xen/images/rhel5u5-x86_64.dsk.hda,w']
vif = [ 'type=ioemu, mac=00:16:3e:09:f0:12, bridge=xenbr0', 'type=ieomu, mac=00:16:3e:09:f0:13, bridge=xenbr1']
uuid = "b10372f9-91d7-ao5f-12ff-372100c99af5'
device_model = "/usr/lib64/xen/bin/qemu-dm"
kernel = "/usr/lib/xen/boot/hvmloader/"
vnc = 1
vncunused = 1
apic = 1
acpi = 1
pae = 1
vcpus =1
serial ="pty" # enable serial console
on_boot = 'restart'