Trying to upgrade from Ubuntu Hardy to Intrepid Ibex (on VirtualBox OSE 1.6.2 
and Debian Sid/linux 2.6.26), here. 
Initially I got the same kernel panic error, but "noreplace-paravirt" boot 
option did the trick.
Now I can boot with or w/ any ACPI enabled in the Advanced settings of 
VirtualBox.

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Kernel panic during boot in VirtualBox with kernel 2.6.26.*-generic
https://bugs.launchpad.net/bugs/246067
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