Thanks for your input Reaper, I was just looking to help people who were already planning on using VirtualBox but if you wish to discuss its merits (or lack thereof), sure. Why not. We can do that too.
I've personally gone through the LFS process several times now with VirtualBox so I can be reasonably certain that people shouldn't have any issues using it, that's not a guarantee of course but I think the very fact I am providing a LFS system shows that it is definitely not anywhere near a hard or impossible task to accomplish.
Further, I agree that the compilation times are obviously slower than doing it straight onto your computer but if you have anywhere remotely near a recent machine the times shouldn't really matter. I was done in about 4.5 hours in my VM on a laptop that's about 4 years old, getting close to 5.
With those concerns addressed, I think the main benefit of a VM is snapshots. Regular snapshots make it easy to recover and minimise the amount of time lost due to mistakes. It's saved me several times after making foolish mistakes. Most recently I was removing debugging symbols and somehow totally wrecked the whole LFS system. It was back to the starting board had it not been for my snapshot.
The other benefits, really vary. If you have hardware which gives you issues under linux then with VBox, that's not a problem. I use to have a modem years ago that never worked under linux so in order to play around with it I'd install VMware and full screen my linux VM and use it as if I booted straight into it. Another could be that you simply don't want to partition your drive to play around with LFS then go mucking around to remove it when done and rejoin it to your main partition/s again.
I think that we've really covers both sides of the issue, so once again. If anyone is interested in using my VM, feel free to reply and I'll organise something