virtual box fails to allow creation of any new VM's after install

[BillT]

bill@TS-Server-001:~$ more /var/log/vbox-install.log
Uninstalling modules from DKMS
  removing old DKMS module vboxhost version 4.2.6

------------------------------
Deleting module version: 4.2.6
completely from the DKMS tree.
------------------------------
Done.
Attempting to install using DKMS

Creating symlink /var/lib/dkms/vboxhost/4.2.6/source ->
                 /usr/src/vboxhost-4.2.6

DKMS: add completed.
Failed to install using DKMS, attempting to install without
Makefile:181: *** Error: unable to find the sources of your current Linux kernel
. Specify KERN_DIR=<directory> and run Make again. Stop.
bill@TS-Server-001:~$

ProblemType: Package
DistroRelease: Ubuntu 12.10
Package: dahdi-dkms 1:2.5.0.1+dfsg-1ubuntu2
ProcVersionSignature: Ubuntu 3.5.0-22.34-generic 3.5.7.2
Uname: Linux 3.5.0-22-generic x86_64
ApportVersion: 2.6.1-0ubuntu9
Architecture: amd64
DKMSKernelVersion: 3.5.0-22-generic
Date: Thu Jan 24 17:49:58 2013
InstallationDate: Installed on 2013-01-18 (6 days ago)
InstallationMedia: Ubuntu 12.10 "Quantal Quetzal" - Release amd64 (20121017.5)
MarkForUpload: True
PackageArchitecture: all
PackageVersion: 1:2.5.0.1+dfsg-1ubuntu2
SourcePackage: dahdi-linux
Title: dahdi-dkms 1:2.5.0.1+dfsg-1ubuntu2: dahdi kernel module failed to build
UpgradeStatus: No upgrade log present (probably fresh install)