Bare Metal instances with KVM

My customer is trying to set up a customized version of KVM that allows the virtualization layer to monitor in depth the activities performed on the VMs hosted. The VMs have a specialized kernel module that KVM can use to collect the data. Their assumption (and mine) is that to run this, they would need to run on bare metal instances. They are asking two questions that I am not sure of.

1. Can they create an AMI of a bare metal instance and use it to create new bare metal instances?
2. Is there any limit on the number of bare metal instances they can procure? Are there any availability limits or issues issues with on-demand provisioning of bare-metal instances?
3. Can customers launch bare metal instances on demand?