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Does auto scaling mean my instance will grow in ram/cpu/other resources or i'll be just given more new instances?

It means new instances.

Hot-CPU/memory switch would be a little freaky.

It's here, it's simple, and it works..

Usage: xm mem-set <Domain> <Mem>

Set the current memory usage for a domain.

Usage: xm vcpu-set <Domain> <vCPUs>

Set the number of active VCPUs for allowed for the domain.