I installed virtualbox 4.1.6
I added 'vagrant' to my gemfile
My project's .rvmrc file has been 1.9.2 and 1.9.3 for my attempts
I ran bundle install
"Installing vagrant (0.5.4)" shown from bundler
I installed the lucid32 box per http://railscasts.com/episodes/292-virtual-machines-with-vagrant
I run $ vagrant init lucid32
and I get the "Vagrant could not detect VirtualBox!" error.
I have read through the issues here and all over google discussions.
I have not found a solution that has worked for me.
The problem appears to be that you're running Vagrant 0.5.4. This works with an older version of VirtualBox only. I recommend getting the latest version, as this will work with VirtualBox 4.1.6.
I'm having the same issue. This is especially annoying because the "Vagrant could not detect VirtualBox!" message seems to be displayed instead of the regular output of commands like vagrant --version or vagrant --help, so I can't even figure out which version of Vagrant I'm running.
I'm having the same issue running vagrant-0.8.8 and VirtualBox-4.1.6 on Mac OSX 10.6. I opened a question on superuser prior to seeing this: http://superuser.com/questions/364472/vagrant-complaining-virtual-box-isnt-installed-when-it-is
YMMV but my problem was that I hadn't actually downloaded the VirtualBox software (it's not included with the gem).