I just did a clean install of Ubuntu Server 9.04 in Virtual PC on the Windows 7 RC, and it seems to be having a bit of an issue with the virtual machine's display adapter. I've tried setting a VGA flag in the GRUB configuration to no avail. This is a guess, but I think it has something to do with the color console mode that gets enabled by default at boot time. The system starts booting just fine (i.e. the console looks "normal" when I'm asked to enter an LVM passphrase, etc.), but then the display goes wonky after a few seconds and I end up with this. Typing commands in bash works just fine: it's not like the system is frozen or anything, I just can't see anything that I type. The console looks exactly the way it does in the image below.