This seems to be back in 1.21? 
Installed from PPA.

Select an ISO to testdrive: 5
WARNING: Your CPU's lack of VT will seriously impact performance.

INFO: Using VirtualBox for virtual machine hosting...

INFO: Syncing the specified ISO...

an...@acheron:~$ grep vmx /proc/cpuinfo
flags           : fpu vme de pse tsc msr pae mce cx8 apic sep mtrr pge mca cmov 
pat pse36 clflush dts acpi mmx fxsr sse sse2 ss ht tm pbe nx lm constant_tsc 
arch_perfmon pebs bts pni dtes64 monitor ds_cpl vmx est tm2 ssse3 cx16 xtpr 
pdcm lahf_lm ida tpr_shadow vnmi flexpriority
flags           : fpu vme de pse tsc msr pae mce cx8 apic sep mtrr pge mca cmov 
pat pse36 clflush dts acpi mmx fxsr sse sse2 ss ht tm pbe nx lm constant_tsc 
arch_perfmon pebs bts pni dtes64 monitor ds_cpl vmx est tm2 ssse3 cx16 xtpr 
pdcm lahf_lm ida tpr_shadow vnmi flexpriority

-- 
testdrive claims no VT when I do have it
https://bugs.launchpad.net/bugs/486884
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