I have a start 4-5 VM on AMD X2 3600+ (AMD c'n'q is off). On one I start a Counter Strike Server 1.6 steam, but him work good only when one run. When I run a next vm, he is laging, ex. play normaly on some second, and 1-2sec lag. It problem is only when start a 2+ guest, when I start only vm with CS server its work perfect.
On host run Debian 4 etch with GNOME, on guest Debian 4/CentOS on command line only.
Look at your CPU usage. It looks like you're overloading your Host. If you run one Guest, a full core can be used by the VM. If you run more guests, these have to wait their turn before they can use the CPU. The Hosts also needs the CPU, so if you run two guests, one of the Guests need to wait because the Hosts needs it too. This is your issue. Almost certain of it.
If there is someone else with a better explaination and solution, please correct me.
For now, run only one VM, or run the server on your Host. Your Host has a higher priority for the CPU than a Guest VM.