Arwinss: system hangs on first boot after textmode setup

Created an attachment (id=4803)
Debug log - Arwinss 45997-dbg (3/8/10)

OS hangs on first boot after textmode setup after I click inside VM window.
Using Arwinss 45977-dbg ISO downloaded from forum link.

VM: VirtualBox 3.1.4 r57640
General
Name: ROS
OS Type: Windows 2003

System
Base Memory: 64 MB
Processor(s): 1
Boot Order: CD/DVD-ROM, Floppy, Network
VT-x/AMD-V: Disabled
Nested Paging: Disabled

Display
Video Memory: 8 MB
3D Acceleration: Disabled
2D Video Acceleration: Disabled
Remote Display Server: Disabled

Storage
IDE Controller
IDE Primary Master: ROS4000.vdi (Normal, 447.00 MB)
IDE Secondary Master (CD/DVD):
Floppy Controller
Floppy Device 0: arwinss-45997-dbg.iso

Audio Disabled

Network
Adapter 1: PCnet-FAST III (Bridged adapter, eth0)

Serial Ports
Port 1: COM1, Host Pipe (/tmp/rosdebug)

USB Disabled

Shared Folders None