1. Download the BT4 Final ISO
  2. Install Virtual Machine Manager
    sudo apt-get install virt-manager
  3. Start Virtual Machine Manager
  4. Connect to localhost
    Right Click localhost -> Connect
  5. Start New VM Wizard
    Right Click localhost -> New
    1. Name the VM, and choose to install from "Local install media (ISO image or CDROM)"
    2. Browse to the location of the ISO
      OS Type: Linux
      Version: Generic 2.6.x kernel <- Very Important (see below)
    3. Choose Memory (RAM) size and number of CPUs.
    4. Check "Enable Storage for this virtual machine" and allocate a size now.
    5. Review and Finish.

Now, follow the normal install instructions for installing to a hard drive.
NOTE: There seems to be issues with trying to INSTALL to "Target bus = virtio". This seems to speak to the issue: https://bugs.launchpad.net/ubuntu/+s...er/+bug/517067, which implies that the problem lies in wrong values in fstab. However, I'm not seeing the disk device at all, unless I use Target bus = ide. This bug talks about the workaround: https://bugs.launchpad.net/ubuntu/+s...vm/+bug/279754, and basically says to install to ide, and then modify things accordingly and run from virtio.

Hope this helps.