If you use dedicated-cpu you will assign one or more CPU's to the zones, these CPU's will then only be used by the zone in question, hence, if you have a system with 4 CPU's and dedicate one of them to a zone, that zone will only use that one CPU and the rest of the system will use the remaining three.
Also, the zone will only see the one dedicated CPU.
Capped-cpu is a limit, and limits how much CPU time a zone can use, the zone will still see all the CPU's which the system have, but will not able to use more than the limit.
Edited by: abrante on Sep 9, 2011 12:32 PM
Possibly more importantly, if you use capped-cpu and the zone is idle, the CPU capacity can be used by other apps/zones. This also means you can over-allocate, e.g. if you have 4 CPUs/core and 4 zones, you can set capped-cpu to 2 CPUs on each zone (8 in total) and it will work.