This is a similar problem I have:

This kernel requires the following features not present on the CPU:
0:6
Unable to boot - please use a kernel appropriate for you CPU.

Does this on Parallels 3 on my Intel Macbook. No problem with the other
32-bit editions of [U|K|X]buntu nor JeOS nor Studio.  Enabling and
disabling VT-X instructions doesn't change anything.

That's really fucking professional, guys. An LTS release for the
/server/ that evidently wasn't tested enough. Shuttleworth should have
given you a few more weeks like he did for 6.06.  At the /least/ you
should detect, during the installation process, whether the CPU supports
these extra instructions that the -server kernel needs.

-- 
PANIC: CPU too old for this kernel
https://bugs.launchpad.net/bugs/151942
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