My systems are affected by this too, AMD Athlon64 running 32bit Karmic
and Athlon64 AM2+ running 64bit Karmic, both do the same thing, except
mine goes pink, not yellow, ALL Virtual Terminals affected. Any news on
if/when this will be resolved?

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System testing karmic virtual terminal doesn't work in vbox
https://bugs.launchpad.net/bugs/424995
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