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[ubuntu] Graphics issue - Menu bar not working

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I have installed Ubuntu 12.04.1 on VMWare. Windows 7 is the host OS. I am installing on a HP 630 laptop that has Intel HD Graphics. In Ubuntu, the menu bar does not work. Please see the attached image. The status bar also does not work. The windows work fine. I applied all available updates and restarted the VM as well the host OS, but it is still not working. In "Display settings", the monitor shows as "unknown". Is this a driver issue? How can this issue be fixed?

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