KVM Host Operating System
Install Debian
Define your disk layout, then go ahead and install Debian. This will be a headless system, so there is really no reason to install any GUI on the KVM Host. Boot into the installed system.
Setting the Time
For many reasons it is a really good idea your systems keeps the correct time. This is done using NTP.
apt-get install ntpdate ntpdate pool.ntp.org dpkg-reconfigure tzdata hwclock --systohc apt-get install ntp
Locate Your Files
Being able to locate different files on the system is invaluable.
apt-get install mlocate updatedb
Power Button
Make sure that pressing the power button is handled properly.
apt-get install acpid
Console Fonts
Avoid having itty bitty tiny characters in your framebuffer. Edit /etc/default/console-setup.
FONTFACE="Terminus" FONTSIZE="32x16"
Restart the console-setup service.
service console-setup restart