Changing the console isn't necessary, what made you think the change was needed?
If I keep the console as it is by default, I don't get any prompt when uising xm console.
Maybe an issue related to XEN 3.2.
Can anyone confirm it's working out of the box with xen 3.2 ?
EDIT : I tried setting back console to xvc0. I confirm it's not working. Console display stops after HAL start. No login prompt is displayed.