The default installation hangs somewhere. This is similar to Fedora Core 10 that I describe before. The solution is somehow similar.
Boot Ubuntu 9.04 up. On the first screen, choose [English].
Then press [F4] and select [Safe Graphics].
Then press [F6], but do not select any option. Instead press [Escape] and it will allow you to change the command line. Remove the option "quiet splash --" and replace it with "vga=791 noreplace-paravirt" instead.
Press [Enter] to start the installation.
I will expect more issue with the grub menu and other options later on, but my VM is still installing as I type here, so I won't know at this point of time. I will update again on a later post if there is any other issues.
Update: Yes, as pointed out by a commenter below, it is also possible to access command line by pressing [Esc]. However, you had better somehow remember the whole command, because it is not echoed onto the screen.
Update: Also note that during the bootup, it will take a while at the message that said squashfs.... Do not panic. That is normal.
Update: Near the end of the installation, at about 97%, there is a long wait to remove software packages. This is normal.