Yes!  NetWare can be virtualized using Xen on SUSE Linux Enterprise Server 10 SP1.  It’s part of the feature set of Open Enterprise Server 2 — more info:  product home page, audio podcast, Novell CTO blog, press release, workgroup blog

A couple of related news articles

One great thing about the way that OES 2 was designed is that it is simply an add-on to SLES 10.  That means, all the hardware that is officially certified for SLES 10, is now officially certified to run virtualized NetWare (OES 2).  Get a list of the certified hardware on the Novell site here, and don’t forget to check your favorite hardware vendor’s own website for the latest info.