I understand that if you install Ubuntu on Windows using Wubi, there are disk performance issues since the entire system is mostly concentrated on a single file.

What about the case of a Virtual Box, will it have improved performance over just installing on Windows with Wubi, or underneath they are the same thing.

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"that if you install on Windows" ... If you install what on Windows? – Oli May 24 '11 at 10:20
I meant to say, not to create a separate partition for it. – Gunner May 24 '11 at 10:24
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Ubuntu running inside VirtualBox on Windows will not have a better performance than Ubuntu installed wihtout separate partition (thus using file on Windows file system). Most likely the performance will be worse.

In the first case, you have a file on Windows FS + virtual machine; In the second case, you still have a file on Windows FS but no virtual machine.

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