Switching to Nouveau let me complete installing an ubuntu 12.04 guest
successfully.

A second Ubuntu 14.04 system with same hardware but an AMD graphics card
and proprietary driver also completed installing the ubuntu 12.04 guest.

So the conflict has only been triggered by the recommended Nvidia
proprietary drivers (version 331.38).

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https://bugs.launchpad.net/bugs/1343422

Title:
  Starting a virtualbox guest triggers kernel "BUG: soft lockup"  in
  host

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