Confirming that Perryg is correct re: vm settings.  I was using a
downrev version of virtualbox to look at the UI.  The rest is correct,
however -- disabling ACPI works around the kernel hang, but has other
issues.

IO APIC and PAE options in virtualbox don't seem to have an effect,
however the -pae kernel functions better than the non-pae kernel for me
(it is able to shut down cleanly).

-- 
Latest -11 kernel won't boot, -10 works, Lucid
https://bugs.launchpad.net/bugs/510571
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