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 seems that openvz devels keep just the latest rpm packages in the repos, so yum downgrade doesn't work.
I'm glad you've solved your immediate problem and thanks for reporting back. Looks like this bug will hit a lot of users without vswap capable kernels...