Windows 7 guest freezes in ubuntu 12.10 host

[Chelmite]

• Guest effects:
  • While running a Windows 7 guest on a Ubuntu 12.10 x86_64, the guest display will freeze except for the cursor, which I can move.
  • None of the Windows applications (typically Visio 2010) respond
  • None of the application menus respond.
  • None of the Windows menus respond.

• Host effects:
  • The VisualBox menus do work.
  • Sending ctrl-alt-delete has no effect.
  • The host cpu meter (linux' "top") shows that VisualBox is using 100% of the cpu (2 of the 8 are allocated to VisualBox).
  • VisualBox has the keyboard until I use the Ubuntu key.
  • If I shrink the VisualBox window from full screen, the Visualbox window turns black.
  • If I resize the VisualBox window back to full screen, most of the VB window is white, with a small black window (about 1/3 the screen size) in the middle.
  • The only thing I found that works is to reset the guest machine.

[Chelmite]

vbox.log