I can confirm the problem exists with the latest Karmic kernel:
mlund@mlund-kubuntu:~$ uname -a Linux mlund-kubuntu 2.6.31-3-generic #19-Ubuntu SMP Tue Jul 14 16:04:41 UTC 2009 i686 GNU/Linux
Running the VM with Qemu and kqemu enabled works fine, but it is a lot slower (of course)
I can confirm the problem exists with the latest Karmic kernel:
mlund@mlund- kubuntu: ~$ uname -a
Linux mlund-kubuntu 2.6.31-3-generic #19-Ubuntu SMP Tue Jul 14 16:04:41 UTC 2009 i686 GNU/Linux
Running the VM with Qemu and kqemu enabled works fine, but it is a lot slower (of course)