Guest display in VirtualBox

I can’t resize the display of a Gnome guest in VirtualBox. I’m stuck with a small 800x600 (or 640x480) window. I’m using the vboxvideo driver, but the menu selection “Auto-resize Guest Display” is grayed out. Other than changing the host display settings, does someone know of a way to adjust this?

Have you installed Guest Additions?

Yes, and I’m using the vboxvideo driver.

I have read somewhere it’s necessary to edit xorg.conf and # out the mod lines. Try google

I am also having problems with guest additions.

I am using virtualbox 3.0.4, and the vbox-guest-tools package thats in the repositories is far outdated and fails to load. I tried using virtualbox to download the correct version from sun and building, but the .run gives me this error

linux-nu9c:/media/VBOXADDITIONS_3.0.4_50677 # ./VBoxLinuxAdditions-x86.run                                                                      
Verifying archive integrity... All good.                                
Uncompressing VirtualBox 3.0.4 Guest Additions for Linux installation..............................................................................................................................................................................................................................
VirtualBox 3.0.4 Guest Additions installation
Building a test kernel module failed.  See the log file /var/log/vboxadd-install.log
for more details.
Problems were found which would prevent the Guest Additions from installing.
Please correct these problems and try again.

and here is /var/log/vboxadd-install.log

Installing VirtualBox 3.0.4 Guest Additions, built Tue Aug  4 19:37:03 CEST 2009

Testing the setup of the guest system

Building test kernel module vboxadd_test...

Makefile:38: *** Error: unable to find the include directory for your current Linux kernel. Specify KERN_INCL=<directory> and run Make again..  Stop.

Building the test kernel module vboxadd_test failed.
Giving up due to the problems mentioned above.

I have already installed the correct version of linux headers and source from the repository as well as gcc. Also I have searched google but found no relative information.

So I guess my question is where do I specify KERN_INCL=<directory>, and which directory can I find the include directory?

Try the solution mentioned here, it worked for me:
gabrielstein.org » VirtualBox Guest Additions and openSUSE 11.2 M7

Now the only problem I have is that the Auto-resize Guest Display feature isn’t working with openSUSE 11.2.

I have similar issues, mebbes vbox needs a tweak or two to get up to speed with our shiney new toy?