After a clean install of Ubuntu 9.10 in Virtual PC 2007 the screen looks like the one in the image below. There's no X installed, I only want to access the terminal. How can I address this issue?
Virtual PC isn't very compatible with Linux.
Try Virtual Box (free) or VMWare (not free, but well worth the money.)
Try following This article to see if disabling the framebuffer helps you get your console back.
You could also look at This post for further information and work arounds.
Hope this helps. These tips will also apply to any other GNU/Linux distribution if it suffers similiar problems.