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One of the things that caught me off guard, but isn't surprising is that some hosting companies don't use VM isolation, thus it was possible to pull memory from other sites which may have been patched. Hopefully hosting vendors that don't have isolated VM's don't also allow users to install their own OpenSSL as this would become a vector to compromise neighboring hosts. Of course allowing any custom software install in such an environment is just asking for it.
Could you explain this please?
Here's a possible scenario... I root virtual machine X running on host Z (using heartbleed). Another machine running on Z is virtual machine Y. Because X and Y are not isolated, and I am running whatever I want on X, I can find some uncleared memory (somehow -- how?) that was previously used by Y, thus giving me access to Y. (Seems a bit handwavy, and I'm not sure this is what you meant, so any details would be helpful.)
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For some context, I looked up "VM isolation" and found this article which I think sums it up pretty nicely: http://blogs.msdn.com/b/rsa2008/archive/2008/04/07/isolation...