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Well I have installed the Server version of Ubuntu 12.04. Since I was only getting terminal, I installed the desktop package and executed these commands in the following order:

sudo apt-get install ubuntu-desktop
sudo apt-get update

After installing desktop package, though I got a few failure errors but it got installed. I rebooted but still I cannot see the GUI mode,again landing in terminal. Tried to execute startx command but its only showing a white screen with a black background. Any insight will be deeply appreciated from this Linux beginner.

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The difference between server and desktop is only the GUI. Since it sounds like this is your first go I highly recommend downloading a desktop version and reinstalling you will save yourself a lot of hassle.

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Well I am kinda using a VM in the cloud which has a predefined OS and that is Ubuntu Server. It would be really helpful if you can suggest me how to get the GUI mode in server, i.e. as I have mentioned above with installing desktop package. – Satyajit Jan 10 '14 at 6:06

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