You shouldn't need Xen for a VPN service, especially a VPS with such low specs.
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I ordered a vps from them the other day. They took my payment but never set up the vps despite their advertised 2 hour setup time. Their billing/support department has yet to respond as to why. I ended up opening up a paypal dispute with them (chose that method of payment rather than credit card as their site looks a bit iffy).
I'm not suggesting any brands here, but if you are looking for a VPS for a VPN service, I would suggest that you go for one which supports TUN/TAP and NAT. I've tried a few VPS for the VPN service and they did not have the modules for tun/tap and nat available.
I would suggest that you enquire about this before you switch to a VPS provider.