As I see it, this is not a bug in the kernel but instead: 
1) A decision taken by the Ubuntu TB
2) A change to be requested in Virtualbox

Daniel provides a working solution on how to get 12.04 to run in VirtualBox, 
see comment #5. 
I have assigned this bug to virtualbox. I recommend that virtualbox turn PAE/NX 
on when creating Ubuntu VMs from now on.

James makes a good point as well. A workaround must be in place to
install 12.04 on non-PAE enabled hardware. We used to install PAE only
when 4GB or more of RAM was detected and that the system was online when
installing. I have been told adding the non-PAE kernel would add ~40MB,
therefore it is not possible to have both kernels available on the CD.
To install onto older (non-64-bit) hardware, we would need a separate CD
for older systems or to revert to what we have been doing up to now.

You can read more on the decision from the Ubuntu Technical Board here:

http://www.phoronix.com/scan.php?page=news_item&px=MTAyNzM

Note the following quote: "Switch precise over to PAE kernel by default
on i386; we retain the option to revert if it causes too much fallout
(Colin)"

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https://bugs.launchpad.net/bugs/907390

Title:
  ubuntu12.04 with PAE kernel doesn't boot on VirtualBox - PAE support
  is not enabled by default

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