I can also confirm that the VirtualBox guest utilities mess with and
delete the Xorg.conf file. As the user above, I also boot into low
graphics mode upon rebooting the machine after the Guest Additions
install. I noticed when reviewing the Xserver log file that the
"vboxvideo module failed to load" (paraphrasing) and that there are "no
drivers available"

-- 
Jaunty: virtualbox-ose-guest-utils conflicts with xserver-xorg-core
https://bugs.launchpad.net/bugs/313510
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