Hi,
I can play a bit with a server PE 1950 over weekend, so I start to
test with current backports kernel 4.3

  apate:~# uname -a
  Linux apate 4.3.0-0.bpo.1-amd64 #1 SMP Debian 4.3.5-1~bpo8+1 (2016-02-23) 
x86_64 GNU/Linux

after two hours of testing according to the bugreport it seems no problem
with this kernel as hypervisor.

So probably current workaround for this old CPUs and virtulization is to
install this kernel from backports on hypervisor.
-- 
Zito

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