Could you please guide me with some pointers or resources to get started with the creation of virtual machines?
I am little confused with libvirt with Xen and qemu.
how does xen or qemu related with libvirt ?
Libvirt is a toolkit that helps you make use of the virtualization capabilities of hypervisors like xen and qemu/kvm.
The Ubuntu Server Guide begins its section on virtualization by talking about libvirt, since it's through libvirt that you'll interact with your virtualization system. I'd check that out for an introduction; the concepts will be helpful even if you're using another distro:
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Brian