The problem also occurs with VirtualBox. Using a kubuntu 10.4 64bit host, I installed the proprietary version of VirtualBox (downloaded virtualbox-3.2_3.2.2-62298~Ubuntu~lucid_amd64.deb from http://www.virtualbox.org/wiki/Linux_Downloads) and made a ubuntu 10.4 32bit server image (from ubuntu-10.04-server-i386.iso). I accepted all defaults during installation, and the "Gave up..." error was shown once the virtual machine rebooted after installation.
The problem also occurs with VirtualBox. Using a kubuntu 10.4 64bit host, I installed the proprietary version of VirtualBox (downloaded virtualbox- 3.2_3.2. 2-62298~ Ubuntu~ lucid_amd64. deb from http:// www.virtualbox. org/wiki/ Linux_Downloads) and made a ubuntu 10.4 32bit server image (from ubuntu- 10.04-server- i386.iso) . I accepted all defaults during installation, and the "Gave up..." error was shown once the virtual machine rebooted after installation.