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Installing VirtualBox Guest Additions
The Guest Additions consist of drivers and system applications for the guest operating system that optimize the guest for better performance and usability. The features they provide are:- Mouse pointer integration: You no longer have to click the Right Ctrl button to uncapture the mouse. This happens automatically once your mouse pointer gets out of the Virtual Machine's screen.
- Better video support: High video modes and accelerated performance.
- Shared folders: An easy way to share files between your host and guest OS.
- Seamless windows: This feature allows individual windows from the guest OS to be displayed on the desktop of your host OS.
- Shared clipboard: Copy/paste text between your host and guest OS.
In VirtualBox's main window click the Settings button and go to General Settings -> Advanced tab. Here rearrange the Boot Order and set Hard Disk first.

Next in the CD/DVD-ROM Settings browse to C:\Program Files\Sun\xVM VirtualBox and select VBoxGuestAdditions.iso to be mounted.

Now we are ready to power on our Ubuntu Virtual Machine. Just click the Start button. Ubuntu will boot from the virtual disk.
When prompted enter the username you have previously chosen to log in Ubuntu.

Once you have logged in click Applications -> Accessories -> Terminal. Here type:
cd /media/cdrom
sudo bash ./VBoxLinuxAdditions.run
and type again your user password. Wait a while and Guest Additions will be installed.

Now you must shut down your virtual machine. Close the terminal and select System -> Quit -> Shutdown.

Return to VirtualBox's main window and again click the Settings button. In the CD/DVD-ROM Settings uncheck Mount CD/DVD Drive.

Click ok and now we are ready!