Our August 2008 Ubuntu Sixpack DVD boots to an Ubuntu base system. The other Live distributions then run in a VirtualBox virtual machine.
Because these systems are running virtually, you can't install them directly from inside the virtual machine.
The easiest way to install Kubuntu or any of the other Live systems is to burn the Live ISO image to a CD, boot to the CD, then launch the installation from within the Live system.
You will find the .iso images that are mounted into the VirtualBox in the /virtualbox/ISO-Images directory.
Burn the Kubuntu ISO image to a CD and boot to the CD.
Then launch the installation from the Kubuntu Live CD.
Keep in mind that burning an ISO image is not the same as copying and burning an ordinary file – remember to choose the option for burning an ISO in your CD burning utility.
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