As I remember OE, Ubuntu has it's own proprietary installer where one of the options is to install within windows. The user doesn't really need to know anything about Wubi because Ubuntu does it all for you. I tried it once a couple of years ago, but uninstalled it quickly.

Virtualbox OSE doesn't have USB support built in to it - you need PUEL for that. However, you can access USB drives on OSE through the Virtualbox shared folders.

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