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Which option should I select in the 'Partition disks' screen when installing Ubuntu Server 12.04 x64 on an Oracle VirtualBox?

Options are:

Guided - resize SCSI3 (0,0,0), partition #5 (sda) and use freed space  
Guided - use entire disk   
Guided - use entire disk and set up LVM   
Guided - use entire disk and set up encrypted LVM  
Manual

I selected Guided - use entire disk and set up LVM but then got this scary message: Note that all data on the disk you select will be erased, but not before you have confirmed that you really want to make the changes.

I'm assuming it's only referring to the virtual hard drive and not the real hard drive on my computer. Just want to confirm.

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Yes,its just refferring your virtual hard drive and not the real hard-drive.It doesn't affect your main hard-drive,i'm sure about that.

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