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Your Linux seems really easy, I usually have to do
mkdir -p/mnt/iso && modprobe loop && mount -o loop/this/is/really/a/long/path/LiveCD-2012.iso/mnt/iso
But mine is one line shorter:p
kvm (with a little patch) supports it, running it right now with 5 guests and have 53K pages which are shared.
# cat/sys/kernel/mm/ksm/pages_sharing
53714
That's ~200MB for about 1,5GB memory used on the host.
Now I can't figured out how many times those pages are shared, so I can't calculated the actual memory saved (it's between 200MB and 4x200MB).
