After restarting the host (Ubuntu on Dell Vostro 420), Virtualbox is working 
fine.
FYI this is what I remember doing
--
install Virtualbox from Ubuntu Software Centre
install Windows XP
windows screen doesn't fill available window
couldn't access usb
couldn't share directories
run $sudo adduser humphrey vboxuser
usb now accessible
run $sudo adduser humphrey vboxuser
fails with "group vboxsf does not exist"
tick "guest additions" in "X86 virtualization solution - base binaries" in 
Ubuntu Software Centre & click <apply changes>
no effect
remove & reinstall "X86 virtualization solution - base binaries"
virtualbox reports error "Kernel driver not installed (rc=-1908)"
--
I decide to explore first before reinstalling virtualbox from the ppa at 
launchpad
--
I find references to "insert guest additions CD image"
I find the entry on the "devices" menu of virtualbox & execute it
I can share directories
--
I don't remember at what points or how often I rebooted the virtual machine, 
virtualbox and/or the host
I hope this helps

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https://bugs.launchpad.net/bugs/1504056

Title:
  cannot start client in virtualbox after reinstal of binaries

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