After installing Ubuntu Hardy on a VirtualBox virtual machine I installed the VirtualBox Guest Addition (see VirtualBox documentation) but before restarting I had to correct the /etc/X11/xorg.conf modified by the Guest Addition procedure that does not correctly define the video driver and the mouse input device.
Add the lines in bold:
…
Section “Device”
Identifier “Configured Video Device”
Driver “vboxvideo”
EndSection
…
Section “ServerLayout”
Identifier “Default Layout”
Screen “Default Screen”
InputDevice “Configured Mouse”
EndSection
…
Restart the system and you should have the maximum video resolution your video hardware allows, automatic mouse capturing within the virtual machine window, shared clipboard and the other stuff.
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