Latest Paravirt Kernel
I'd love to get somewhat closer to mainline (at 2.6.37 now), but I'm hesitant if these later kernels are considered buggy or unstable.
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Nonetheless, you're right, they were reverted because people were experiencing issues. Check around the forum.
I haven't tried Linode's post-2.6.32 kernels yet, although I am running 2.6.35.4 at another provider with no issues. Kernels are fickle.