This sounds EXACTLY life the problem I had in Hardy 8.04.1 .  On an HP
6910p laptop with ATI video controller.  Did a fresh vanilla install.
Installed VMWare 1.0.6 such that I could put windows XP on machine as a
guest.  The initial install worked well and didn't seem to be a problem.
I must have installed something either in the VM Guest (XP) or on the
Host Ubuntu, because the kernel panic was reproducible and constant.
Five minutes after booting the guest OS, hard machine lock up.  Causes
me to go back to Gutsy.  Maybe I'll tool around in the forums again to
see if I find a solution.

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Bad interactions with kvm and vmware (CPU left in VMX root mode?)
https://bugs.launchpad.net/bugs/220419
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