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New to this but tried pretty much everything - but do I need an actual physical removable CD in order to install Ubuntu inside VirtualBox?

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You just need an ISO file. If you go to "Storage" in the VirtualBox settings for your VM, you will see an Empty CD. Select the Empty CD and then in the Attributes section, click the drop down, the one with the CD icon, and browse to your ISO file and select it. That's it! Now just boot! :)

Eric Mintz
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    So frustrating, this is exactly what I have done, still getting the Input/Output Error...dont know why this wont work... – MerkleErkle Dec 30 '18 at 19:27