Home » General » Support » ovzkernel-2.6.18-308.el5.028stab099.3 + vzctl-3.2-1 = problems "detected vswap CT config but ke(Error: detected vswap CT config but kernel does not support vswap)
It might be a bug in vzctl. I couldn't see any vswap specific instructions while quickly skimming across your original CT config (please doublecheck), so it should work with your kernel.
If a similar vzctl bugreport doesn't exist, please do open a new one.
In the meanwhile I'd advise you to downgrade vzctl to the previous version - "yum downgrade vzctl" should do the trick...