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Workaround done by :
1. since using 2.6.18-308 RHEL kernel, xen drivers are included, hence created a new initrd and updated the modprobe.conf & grub.conf
2. in OVMM changed VM properties to HVM with PV Drivers
3. Rebooted machine, drivers are now xen-vnif and xen-vbd
But, interestingly, the vm.cfg did not get updated with the type=netfront directive.
I guess, it is better just to use the 2.6.32 kernel from now on ....
Why not just use a PVM?