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Howtoforge posted a guide about setting up KVM on a CentOS 6.3 server



This guide explains how you can install and use KVM for creating and running virtual machines on a CentOS 6.3 server. I will show how to create image-based virtual machines and also virtual machines that use a logical volume (LVM). KVM is short for Kernel-based Virtual Machine and makes use of hardware virtualization, i.e., you need a CPU that supports hardware virtualization, e.g. Intel VT or AMD-V.
  Virtualization With KVM On A CentOS 6.3 Server