Seems that there is an issue with VirtualBox Guest Addons and Jaunty. The VirtualBox video driver will not install with the latest release of X. So what I did was extract the .run file:

# sh VBoxLinuxAdditions-*.run --target foo

This will extract the binary file into the directory foo. Once that is done I go into the foo directory and edit the install.sh file.

# cd foo/
# vi install.sh

Instead of using vi use your preferred text editor. Next thing you want to do is search for the number 1.6. In vi, that would be /1\.6. Once you have found that, you will see something like 1.5.99.* | 1.6 ). Change the 1.6 to 1.6.0, save the changes, exit out of your text editor and then run the install.sh file:

# sudo ./install.sh

This should now go through and install the guest addons so you can have good video graphics instead of the 800×600 vesa garbage. Hope this helps people. Thanks to those on IRC who helped figure this one out.

Edit: Someone just pointed out THIS LINK to the VirtualBox forums that states the same exact thing.