Thanks for reporting this issue.  VirtualBox provides its own X driver,
and this seems to be an issue with that.  Reassigning

** Package changed: xorg-server (Ubuntu) => virtualbox-ose (Ubuntu)

** Changed in: virtualbox-ose (Ubuntu)
       Status: Confirmed => New

-- 
Kubuntu hardy-kde4 -> intrepid upgrade test X server fails to start after 
upgrade
https://bugs.launchpad.net/bugs/270636
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which is subscribed to xorg-server in ubuntu.

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