I am looking for non gui based linux that I can set it up as guest os using Virtual box on Windows 7. Any ideas?
I myself am running Arch Linux. It's intended to be as lightweight as possible.
You may like coLinux - it is not a distribution, but rather a special type of a VM - the Linux kernel isn't fully virtualized, so it's a little faster, especially if you don't need an X server. (It's still possible to use Xming or Cygwin/X though.)
Ubuntu Server is probably a really easy to go (though I haven't tried it in Virtual Box). You can have it automatically install LAMP for you during the install process.
There are a TON of choices. I say go with what you're most familiar. I'll throw out CentOS as that's what I'm installing on a headless server as I type this.
It may be worth your time to check out Cygwin. It will allow you to run many Posix-compliant packages natively from Windows.
Another good server distribution is CentOS. It's similar to Red Hat Enterprise Linux and is a good place for people starting out with Linux.
But if all you want is a web server stack, there are Windows versions of the entire Apache, MySQL, and PHP (LAMP) stack. Try Googling for XAMPP or WAMP.
I have been using Portable Ubuntu for awhile: http://portableubuntu.demonccc.com.ar/
Seems to work pretty good.
A lot of distributions that start without a GUI will contain only the bare basis needed to be able to install everything you want. If you would want my opinion then check out Gentoo Linux:
Gentoo Linux, a special flavor of Linux that can be automatically optimized and customized for just about any application or need. Extreme performance, configurability and a top-notch user and developer community are all hallmarks of the Gentoo experience.