This document proposes and evaluates scheduling policies in a virtualized grid environment that aim to minimize VM preemptions and increase resource utilization. It first presents an analytical queuing model of a grid with multiple clusters receiving local and external requests. It then proposes a two-part scheduling policy: 1) A workload allocation policy that determines the fraction of external requests allocated to each cluster in a way that minimizes preemptions, based on the analytical model. 2) A dispatch policy that prioritizes more valuable external requests to reduce their chance of preemption. The policies are evaluated based on metrics like preemptions, utilization and response time. Results show the proposed policies significantly outperform others in minimizing preemptions across different workload scenarios