I tried with 20130117 image of i386 on VBox and the kernel panic occurred when 
booting on recovery mode. Please see the attached screenshot. 
On VBox the normal booting succeeds most of the time though as opposed to 
almost never on virt-manager.
The contents of /var/log on the i386 server installation on VBox is also 
attached below.

** Attachment added: "VBox_kernel_panic_i386_recovery.png"
   
https://bugs.launchpad.net/ubuntu/+source/linux/+bug/1100386/+attachment/3486079/+files/VBox_kernel_panic_i386_recovery.png

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https://bugs.launchpad.net/bugs/1100386

Title:
  Raring server installations on VMs fail to reboot after the
  installations

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