Plz help after Ubuntu upgrade my Virtualbox is corrupted

[d3crypt0]

Please please help. I am a noob in Linux, and I upgraded my ubuntu (natty I think) two days ago. The first issue was that my graphiccard was not compatible with the newest graphical settings, so I had to make it run in lower graphic mode. Now the graphics are all fine although I dont like the new GUI. Everything has been shifted in a leftside icon pain, which makes it difficult for me to find things. However I am currently using the search to findt 'Terminal' and virtual box.

My problem is that every time I start my virtual box I get prompted with the following:

Failed to open a session for the virtual machine XXX.
The virtual machine 'XXX' has terminated unexpectedly during startup with exit code 1.

Kernel driver not installed (rc=-1908)

The VirtualBox Linux kernel driver (vboxdrv) is either not loaded or there is a permission problem with /dev/vboxdrv. Please reinstall the kernel module by executing

'/etc/init.d/vboxdrv setup'

as root. Users of Ubuntu, Fedora or Mandriva should install the DKMS package first. This package keeps track of Linux kernel changes and recompiles the vboxdrv kernel module if necessary.

Then I have tried running the '/etc/init.d/vboxdrv setup' in Terminal as root:

root@me-desktop:~# sudo /etc/init.d/vboxdrv setup
* Stopping VirtualBox kernel modules * done.
* Uninstalling old VirtualBox DKMS kernel modules * done.
* Trying to register the VirtualBox kernel modules using DKMS
Error! Bad return status for module build on kernel: 2.6.38-8-generic-pae (i686)
Consult the make.log in the build directory
/var/lib/dkms/vboxhost/3.2.12/build/ for more information.

make.log:
DKMS make.log for vboxhost-3.2.12 for kernel 2.6.38-8-generic-pae (i686)
Fri May 6 20:26:21 CEST 2011
make: Entering directory `/usr/src/linux-headers-2.6.38-8-generic-pae'
LD /var/lib/dkms/vboxhost/3.2.12/build/built-in.o
LD /var/lib/dkms/vboxhost/3.2.12/build/vboxdrv/built-in.o
CC [M] /var/lib/dkms/vboxhost/3.2.12/build/vboxdrv/linux/SUPDrv-linux.o
In file included from /var/lib/dkms/vboxhost/3.2.12/build/vboxdrv/include/VBox/types.h:30:0,
from /var/lib/dkms/vboxhost/3.2.12/build/vboxdrv/linux/../SUPDrvInternal.h:35,
from /var/lib/dkms/vboxhost/3.2.12/build/vboxdrv/linux/SUPDrv-linux.c:31:
/var/lib/dkms/vboxhost/3.2.12/build/vboxdrv/include/iprt/types.h:97:31: fatal error: linux/autoconf.h: No such file or directory
compilation terminated.
make[2]: *** [/var/lib/dkms/vboxhost/3.2.12/build/vboxdrv/linux/SUPDrv-linux.o] Error 1
make[1]: *** [/var/lib/dkms/vboxhost/3.2.12/build/vboxdrv] Error 2
make: *** [_module_/var/lib/dkms/vboxhost/3.2.12/build] Error 2
make: Leaving directory `/usr/src/linux-headers-2.6.38-8-generic-pae'

I searched after the linux/autoconf.h is located:
/usr/local/virtualbox/linux-headers-2.6.38-8-generic-pae/include/generated
and
/usr/src/linux-headers-2.6.38-8-generic-pae/include/generated

Do I need to copy the file to another location?

Anyway...after this I get a problem and I am requested to report it as a problem, which fails as well.
I get a "Sorry, the package "virtualbox-3.2" failed to install or upgrade. You can help the developers fix the package by reporting the problem". When I click to report the problem I get a new error message:
The problem cannot be reported:
This is not a genuine Ubuntu package

I am really getting nervous an irritated. I have once experience getting problems with Virtualbox, but I fixed it somehow. I cant remember how. The thing is that I have done some programming in one of my virtualbox images, and I really need to get it, but I cannot start my virtual machine due to the problem. Please I will really appreciate if someone can help me. I tried doing a lot of things mentioned on other forums, but my issue is not resolved.

Remember I am a pretty noob, so I need step by step instructions, as I do not know where to find things. I know how to use the Terminal, and I can easily run some commands there. I have yum installed...

Can someone please help a linux noob?

[Sasquatch]

Your VB release does not support Natty. You have to upgrade to at least 4.0.6 before you can use VB.

[pbhj]

I did the Natty (Kubuntu 11.04) update and ended up reinstalling with version 4.0.6.

One to look out for is that there's now an extension that handles vbox USB 2.0 that needs installing. Attempting to run my virtual machine without this installed caused a hard-lock and I had to cycle the power ...!