This document evaluates the performance of a virtualized HPC cluster using the HPC Challenge benchmark suite. It investigates three performance tuning techniques: PCI passthrough to bypass virtualization overhead for the network interface card, NUMA affinity to improve memory access performance, and reducing "VMM noise" like unnecessary services on the host OS. The results show these techniques can improve performance of the virtualized cluster to be close to that of a non-virtualized or "bare metal" system, realizing a more practical "true HPC Cloud."