Hi all,
Reoplying to my own post here, rather than deleting it, for the benefit of others. What I found from some more digging is that this is an Ubuntu Server issue, not Hardy specific. If you are installing on a virtual machine there is a workarouind here
http://blog.networkfoo.org/?p=170 :
<snip>
To fix I did the following:
Shutdown the VM.
Open the settings on the VM through the Sun xVM VirtualBox manager
General -> Advanced -> check Enable PAE/NX
Start your VM
Alternatively, with Ubuntu, you should be running the virtual kernel. Install server as normal, then before rebooting hit alt-f2 to get a shell. Run “chroot /target”. Then “apt-get install linux-virtual”. You could also do the same by booting for the install CD and selecting the option to repair the install and running apt-get from there.
<snip>
If, like me, you are installing as a "real" install it seems there is no workaround, although maybe you might get lucky with some BIOS settings. Basically I´m going to install Ubuntu Desktop version instead and then try again.
Best regards,
jon