Linux 2.6.20 has been released after two month continuous development phase. The current release includes two different virtualization implementations: KVM: full-virtualization capabilities using Intel/AMD virtualization extensions and a paravirtualization implementation usable by different hypervisors.

Short overview;

2.6.20 makes linux join to the virtualization trends. This release adds two virtualization implementations: A full-virtualization implementation that uses Intel/AMD hardware virtualization capabilities called KVM (http://kvm.sourceforge.net) and a paravirtualization implementation (http://lwn.net/Articles/194543) that can be used by different hypervisors (Rusty’s lguest; Xen and Vmware in the future, etc),. But this release also adds initial Sony Playstation 3 support, a fault injection debugging feature (http://lwn.net/Articles/209257), UDP-lite support, better per-process IO accounting, relative atime, support for using swap files for suspend users, relocatable x86 kernel support for kdump users, small microoptimizations in x86 (sleazy FPU, regparm, support for the Processor Data Area, optimizations for the Core 2 platform), a generic HID layer, DEEPNAP power savings for PPC970, lockless radix-tree readside, shared pagetables for hugetbl, ARM support for the AT91 and iop13xx processors, full NAT for nf_conntrack and many other things.
Read the list of changes in more details.