I have some book recommendations, but be open to more than just books. For example:
To connect neurons and make all the right ideas fall into place, see these two MIT video lectures:
http://ocw.mit.edu/courses/electrical-engineering-and-computer-science/6-033-computer-system-engineering-spring-2009/video-lectures/
Lectures 6 and 7
See also chapters 4 and 5 of Principles of Computer System Design, MIT Press, if there is a copy at your library, or I guess if you want to buy the whole book for the two chapters.
Here is a link to an authoritative IEEE article on the topic:
IEEE: Computer volume 38 Issue 5 "The architecture of virtual machines"
http://ieeexplore.ieee.org/xpl/freeabs_all.jsp?arnumber=1430629
Use a university library to retrieve and print it, or of course you can purchase it.
Two books pitched more toward industry than academia, findable on Amazon and such:
Smith and Nair, Virtual Machines: Versatile Platforms For Systems and Processes ISBN 1-55860-910-5
Craig, Virtual Machines ISBN 1-85233-969-1
Important: After some general reading, differentiate between process VMs and system VMs and pursue the one you find more interesting in more depth. If you're looking for new applications for the technologies, the local university library's CS journals are a good place to search. I usually search them online with my login (when I have one, or visit the actual location if I don't) and download the pdf's to read with my morning coffee.