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Set your Virtual machine to use NAT, I bet that takes care of your problem.
The problem was that my company uses a proxy server and I had to define it in the virtual machine. Thanks for the help though.
I also had this sort of problem. But In my case, Ubuntu 11.10 was on VirtualBox on Windows 7 Enterprise, and tightly secured corporate network. But the issue, I think, was on host side.
What I did, is as follows: 1. On VirtualBox's Network setting, choose "NAT", and check "Cable connected" 2. On host machine's network adapter settings, re-check that "VirtualBox Host-Only Network" has DHCP, all other settings are set to automatic. 3. On host machine's own "Local Area Connection", went to "Properties">>"Sharing", and check "Allow other network users ...". And "OK" 4. On virtual machine, Disconnect once by "Uncheck"ing "Enable Networking", then "check" again. Bingo!, then Internet was working fine.