Go to "Sugar on a Stick v4 Mango Lassi"
Download the first two files. Third is unnecessary.
In VirtualBox create a new machine as a Fedora machine with 256mb of memory. Instead of creating a new hard drive load the one you downloaded.
Once that is done you can boot up and use "sugaruser" as the password to login in and "sugarrroot" as the root password.
You CAN update it using "yum groupinstall sugar-desktop" in the sugar terminal but in the VM I'm using it doesn't seem to work.