@Colani: I think it would crash also with more powerful video cards. Nvidia and ATI drivers need a code refresh, but no one has the time to do this... In the meanwhile, select a VESA mode. It's also more compatible with games and emulators in the distro.
@Merc: that's a VPC issue. VPC IMHO is the worst virtual machine ever, please use VMware server (that's equally free) to get rid of any emulation problem. VmwAROS runs fine on it, with network too.