This seems to be a problem with VirtualBox.  I saw the problem when
testing with VirtualBox 3.0.8.  I upgraded VirtualBox to version 3.1.6
(latest) and the problem goes away.

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ubuntu-10.04-beta2-server-i386.iso (& desktop iso) does not run in VirtualBox
https://bugs.launchpad.net/bugs/559028
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