I have a file named aes_demo.vmdk that I received from someone who did some contract work for our company. I can no longer get a hold of that person. It is a Linux Ubuntu hard drive file for VirtualBox. I need to set it up so I can run it and get into the virtual machine. Here is the setup screen shots:

The computer I installed VirtualBox on is Windows 7 64-Bit. The version of VirtualBox I installed is 3.2.10-66523. Once I setup the virtual machine I try to start it. I get the below screen. Shouldn't it boot into the computer and show me the Ubuntu desktop? What might I be doing wrong?

EDIT
I have tried the following in Grub to see if I could get it working. Oh, I did try the below as a SATA, SCSI, and IDE drive. They all ended the same.

When I boot from the Grub prompt it appears to be working. Then I get the following error message:
