Just upgraded from Jaunty to Karmic and I just started seeing this problem.
sudo aptitude purge qemu qemu-kvm
worked !!!

Not sure if it was nessesary to purge both qemu-kvm & qemu, but i did both just 
to be sure.  I am not using it for anything anyways.
Thanks Germán Pablo Gentile (#15)

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VirtualBox can't operate in VMX root mode.
https://bugs.launchpad.net/bugs/292588
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