Hi.
Here some simple steps I used to install XPenology on Proxmox KVM virtual machine:
Obtain XPenology form there: viewtopic.php?f=2&t=1028
Create VM in proxmox: use "Other type" for OS
allocate memory (1 Gb is good)
add network card of "Intel E1000" type
do not use any CDROM media
add first disk RAW format using VIRTIO interface (!important) and 1 GB size or whatever small one - this will be our boot disk
add second disk using SATA interface any size you want - that one is for NAS usage
set VM to boot from first disk
SSH to Proxmox node and go to VM location (/var/lib/vz/images/VMID) and REPLACE first disk image (e.g. vm-VMID-disk-1.raw) with image file from XPenology archive
[*]start VM and boot it
[*]use Web or Application Synology Assistance to setup NAS, select to use PAT file from XPenology archive
[*]wait for VM reboots after installation
[*]use your NAS normally