I am running the new Mac Air 13" with OS X 10.8.2. I then downloaded the latest VirtualBox 4.2.6. Then, I installed Ubuntu 10.04 into the VM.
First off, after I installed the VirtualBox Guest Additions and restarted the VM, the Ubuntu desktop froze after the GDM login and I had to delete the VBoxGuestAdditions folders out of /opt and /usr/lib to get back to normal again.
Second, I go to Ubuntu's System > Preferences > Monitors and try to change the settings, and there's nothing higher than 800x600. I then tried the VirtualBox various View menu settings and tried again in Ubuntu's System > Preferences > Monitors and I'm still stuck.
I fixed the problem by doing:
Turn off 3D Acceleration in the VB settings -- that's why the Guest Additions were locking up after login.
Run this in the terminal of your ubuntu virtual machine, not the host OS:
Go to the Devices menu and tell it to install the Guest Additions. A new CDROM will appear on the desktop. Rightclick and choose the Autorun.
Restart the VM.