First of all for virtualization to work properly both the motherboard and the cpu has to support VT. However in your case, the E7200 does not seem to have VT feature: http://processorfinder.intel.com/List.aspx?ParentRadio=All&ProcFam=0&SearchKey=e7200 . If the cpu does not support VT, even if the motherboard support VT, the VT option will normally not appear at all in the bios. I assume the error you are getting could be because of that. Moreover if your operating system is a 64bit one you can only use 64bit guest os in virtual box and the same apply for 32bit operating system. I experienced that issue before. Hope these info will be useful to you.
Thanks looks like your right. I need at least E8400 to get VT. The the CPU I originally wanted but not available locally. Do you know if upgrading to that processor also requires a BIOS Upgrade or just an update? Since the E8400 is compatible with my mother board and my memor is already 1333 MHZ it does not need update.
Thanks for your help.