There is a blog at blogs.sun.com/JeffV/entry/layered_virtualization and is running virtualbox inside a zone. I followed the same steps and receive the error in the post. I have tried OpenSolaris 2009.06 (which by the way you need to create /etc/fonts and download the fonts.conf file or the VB gui will terminate) and SXCE build 115 and get the same error on both.
The only search I could find on the error says for Machines it has to do with permissions. That doesn't seem to be the case. Also, VirtualBox is supposed to support OpenBSD but it doesn't work - and never has - despite saying it supports OpenBSD. It would be nice if there was consistency (i.e., the blog entry works but my install doesn't) in the opensolaris and virtualbox products and if Sun would provide solutions to what is supposed to work. -- This message posted from opensolaris.org