X Server problem in Ubuntu Server 8.4

As, I mentioned in my earilier post, (http://yogidilip.blogspot.com/2008/09/ubuntu-server-as-virtual-machine-on-xp.html#links) I installed a virtual Ubuntu Server 8.04 on my XP. Now the problem is that I cannot run startx in Ubuntu. Whenever I type the command it gives me some error:

 error X: cannot stat /etc/X11/X (No such file or directory), aborting. ...Unable to connect to X Server.

I don't know what's goin on? I am trying to figure out this problem. Once I got the solution, I will post it here. Any suggestions or solutions is highly appreciated.

thanks,