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Either one can be oversold. I would go with Xen though.
I guess that depends on the game you want to host. I run a CSS server with 24 slots on the 2€/month misterhost.de OpenVZ plan without any problems.
So if you want to host Source-based games you'll probably be fine.
On the other hand java games like Minecraft run better with Xen.
Both can be oversold, but it is easier to oversell openvz. Keep in mind OpenVZ (unless it's vswap openvz) limits memory allocation, not the real usage.
Yeah i'm about to host a few CoD4 servers
As my experience, CSS takes more CPU then cod4
Went for OpenVZ
I can always upgrade
Try and ask the provider directly. Had some mails with them and they answering quickly and they're cool guys