Virtual machine monitors (VMMs) are now integrated with a variety of operating systems and are moving out of research labs into scientific, educational and operational usage. Modern hypervisors exhibit a low overhead and allow concurrent execution of large numbers of virtual machines, each strongly encapsulated. VMMs can offer a network-wide abstraction layer of individual machine resources, thereby opening up new models for implementing high-performance computing (HPC) architectures in both cluster and grid environments. This workshop aims to bring together researchers and practitioners active in exploring the application of virtualization in distributed and high-performance cluster and grid computing environments.