I was able to resolve with Daniel Haas's help. I performed this in terminal:
$ sudo apt-get remove virtualbox
$ sudo apt-get update && sudo apt-get autoremove
$ wget -q http://download.virtualbox.org/virtualbox/debian/oracle_vbox.asc  
$ sudo apt-key add oracle_vbox.asc                                              
                              
$ sudo sh -c 'echo "deb http://download.virtualbox.org/virtualbox/debian 
precise contrib" >> /etc/apt/sources.list'
$ sudo apt-get update && sudo apt-get install virtualbox-4.2
$ sudo usermod -a -G vboxusers MYUSERNAME     # resolve USB issue

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https://bugs.launchpad.net/bugs/1126490

Title:
  virtualbox-dkms 4.1.12-dfsg-2ubuntu0.2: virtualbox kernel module
  failed to build during install on fresh installation

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