I've heard some rumblings that Ubuntu Koala is junk. They switched the hardware layer from hal to DeviceKit and udev and it's giving many people fits. I tried to virtualize it in Parallels 5 and it's stuck in some crappy resolution like 640x480. I've never seen a virtualized OS, whether XP, Ubuntu, Red Hat, or Windows 7 utterly refuse to accept the native host's display settings and be stuck in 640x480 or 800x600. I haven't booted it in like 2 weeks but that was the word back then. If you're going the Ubuntu route I'd stick with Jaunty Jackalope until Koala gets fixed.
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