Ah, sorry, I managed to forget about the USB permission issue.
One way to get around it is to run Arduino in sudo mode — open a command line window, go to the folder where Arduino 1.0.5 is installed (or alternatively, right click on the folder and select ‘Open Command Line Window Here’), then run ‘sudo ./arduino’.
Another way is to add the USB device’s VID/PID pair to /etc/udev/rules.d/60-rayshobby.rules Just copy one of the existing lines and change the VID/PID to 16c0 and 05dc. Then restart the virtual Linux.