I would recommend not using LVM within a VM because it makes it harder to back up the files within the VM
/usr/sbin/lvcreate -L 5G -n vm_testvm VolGroup00 #first create a logical volume for the machine
/usr/sbin/lvcreate -L 512M -n vm_testvm_swp VolGroup00 #create the LV swap file
/sbin/mkswap /dev/VolGroup00/vm_testvm_swp
An install source is needed: List of install media sites: http://www.centos.org/modules/tinycontent/index.php?id=13 (duke university worked: http://mirror.linux.duke.edu/pub/centos/5.0/os/i386/ or Reflected.net: http://pubmirrors.reflected.net/centos/5.1/os/i386/ )
To create a Centos 5.1 DomU, Run either /usr/sbin/virt-install or the graphical front end (same questions)
/dev/xvda1 /boot ext3 y 101 1 13
/dev/xvda2 / ext3 y nnnn 14 nnnn
where nnnn depends on the size of your LV
vi /etc/fstab
/dev/xvdb swap swap defaults 0 0
halt #Then shut down the guest os
vi /etc/xen/image
disk = [ 'phy:/dev/VolGroup00/vm_testvm,xvda,w', 'phy:/dev/VolGroup00/vm_testvm_swp,xvdb,w' ]
ln -s /etc/xen/www /etc/xen/auto/www
/sbin/chkconfig xendomains on #tell the system to start them on next boot
Useful resource: http://osdir.com/ml/redhat.fedora.xen/2006-11/msg00257.html