Here are the steps to successfully install Ubuntu in VPC2007 and this is the easiest method (as there are many tricks to do it in the past) that I discovered.
(1) Setup the new Virtual Machine in VPC 2007 and mount the iso image (ubuntu-8-1.10-desktop-i386.iso).
Please check the size and MD5 Sum to ensure the iso image is successfully downloaded.
MD5 (ubuntu-8-1.10-desktop-i386.iso) = 24ea1163ea6c9f5dae77de8c49ee7c03
(2) Inside the Ubuntu Install Screen, first Press "F4" and Select "Safe Graphics mode"
(3) Then press down arrow and highlight the menu "Install Ubuntu". (highlight only and don't press Enter)
(4) Press "F6" to bring up the "Other Options"
Then type "vesa vga=771" at the end of the option line
Then Press "Enter", the installation will start instantly.
Note: If you want other resolution, you can try say vga=791 instead of vga=771
I did not try all these, some of them might not work. The codes are listed out for reference only.
vga=769 means 600x480 8 bits color
vga=785 means 600x480 16 bits color
vga=786 means 600x480 24 bits color
vga=771 means 800x600 8 bits color
vga=788 means 800x600 16 bits color
vga=789 means 800x600 24 bits color
vga=773 means 1024x768 8 bits color
vga=791 means 1024x768 16 bits color
vga=792 means 1024x768 24 bits color
(5) After installation, it will prompt to restart. But the restart might not work and you have to manually reset the VM in VPC 2007 as in step (6) below
(6) Then release the mounted iso image and in VPC 2007 menu to reset the VM in VPC 2007, that is, VPC menu choose -> Action -> Reset
(7) Enjoy using Ubuntu in VPC 2007, and you can start installing other packages / sdks for development following my other guides in this blog
(8) To solve the sound problem, start the Terminal in Ubuntu and type
At the end of the # lines, but before “exit 0″, type on a new line (again without quotes) “modprobe snd-sb16″
Ctrl + O to write out, enter to accept the name, Ctrl + X to close.