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in other words you can webhost in virtualizations?
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Yes and you can use ispconfig to manage the virtualservers and you can use ispconfig to manage web hosting servers, which can be other dedicated servers or even ispconfig instances inside the virtual servers which are controlled by the ispconfig interface on the host system.
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I'm a little confused as the why virtualisation is in ISPConfig when you cant virtualise from it?
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You can virtualize from within ISPConfig. I posted you the guide to it above, here again the link:
http://www.howtoforge.com/installing...g-3-debian-6.0
Please remember that ispconfig is a multiserver controlpanel, so you can run several servers from one ispconfig interface were e.g. some servers are virtual servers while others are webservers, mailservers etc.
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