I can verify that this affects me too.

Running Virtualbox-2.1 (actually, 2.1.4), Jaunty Alpha 6.

I mounted the guest additions ISO through the VirtualBox Devices Menu
(instead of clicking Machine -> Install Guest Additions). As a result,
Jaunty would not boot into high-graphics mode.

Currently trying Luke's suggestion.

-- 
Jaunty: virtualbox-ose-guest-utils conflicts with xserver-xorg-core
https://bugs.launchpad.net/bugs/313510
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