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I might be totally wrong, but I had a similar issue with the sage virtual machine resently. There is even a discussion about it somewhere in the google groups, but for me worked the following:

After you run the virtual machine for the first time you are asked if "you moved the machine or copied it". You are advised if you are not sure to choose "I copied it", but then you get problems with the connection. So try to reset the VM and choose "I moved it".

I had recently build a test version of a small vm image of a binary version of sage with just 407 MB download size. I have got no feedback so far, but I would be very happy if someone could help me to test it, at least a bit :). Link is: [http://sage.math.washington.edu/home/emil/sagelithe/vm-sage-lithe-a1.zip]