After testing your ppa version, it would appear to be working just fine.
I have other video glitches to deal with regarding the new ati drivers
(inverted colors) that virtualbox seems to initiate faster than other
programs, but that is not related.  The pulseaudio sound is working
great, and the VM started, shutdown and ran the windows updates just
fine.

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vboxdrv occasionally fails to load on karmic 2.6.30 kernels due to active 
nmi_watchdog
https://bugs.launchpad.net/bugs/399732
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