You are trying to run Sage on a virtual machine. This Linix virtual machine requires you to log in.
I note that this virtual machine runs Linux 2.6.32 on a 32-bit virtual machine, which is downright paleontologic...
Are you trying to run a pre-packaged "appliance" ? Those weren't updated for a long time...
A better solution would be to compile from source on your host platform. This is (semi-) trivial on Linux, a tad more involved on Mac OS or Windows, but is well-documented in the
installation guide.
What is your (host) platform ?