I thought I had the same problem with VirtualBox 3.2.12 r68302 until I realised that I needed to use the latest version of VirtualKD (2.5.1) rather than the version that ships with VisualDDK.
2.5.1 introduced support for VirtualBox 3.2.x
By downloading the newer version (2.5.1) of VirtualKD and following the instructions in the readme.txt file I managed to patch virtuall box successfully on the host (by copying the new VBoxDD.dll) and install VirtualKD on the guest.
The apparent hang of the guest at startup in my case was simply that it was waiting for the kernel debugger to attach. Make sure you have windbg or kd running on the correct pipe before you let the guest boot.