This page describes how to set up Funtoo Linux to run Windows 7 Professional 32-bit within a KVM virtual machine.
KVM is a hardware-accelerated full-machine hypervisor and virtualization solution included as part of kernel 2.6.20 and later. It allows you to create and start hardware-accelerated virtual machines under Linux using the QEMU tools.
If you are using an automatically-built kernel, it is likely that KVM is already available.
If you are compiling your own kernel, the following kernel config parameters should be enabled (this is based on a 3.x kernel):
Under Processor type and features, enable Paravirtualized Guest Support. Under the Paravirtualized Guest Support menu, enable any options related to KVM, such as KVM paravirtualized clock and in particular KVM Guest Support.
Under the Virtualization category from the main kernel config menu, enable Kernel-based Virtual Machine (KVM) support, and enable at least one type of KVM, either for Intel or AMD processors. It is also recommended to enable Host kernel acceleration for virtio net.
You can use modules or build these parts directly into the kernel. Build your new kernel and modules, and reboot.