Turned out that this is a known windows virtualization problem on Centrinos [1] like documented here.
So I rebooted (for the umpteenth time), F8-ed and selected the last known working settings, regedited the
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\Intelppm
to the value 4.Rebooted, and voila... works again.
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[1] yes, this was on my beloved laptop.
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