For those who did not install updates, there is a workaround I found:

When you get to a picture similar to the one attached, press any key.
Then select your language. Afterwards, press F6. Press Esc. In the text:

> ... quiet splash --

change to:

> ... quiet splash -- xforcevesa

That should be a workaround.

** Attachment added: "Temporary workaround."
   
https://bugs.launchpad.net/ubuntu/+source/libpciaccess/+bug/1124660/+attachment/3806660/+files/image.png

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https://bugs.launchpad.net/bugs/1124660

Title:
  Precise 20120213 i386 live session fails in virtualbox

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