In October the Joomla! development team has released Joomla! 1.5 beta . This was a milestone in the development of the new Joomla "generation". The new framework is nearly stable. All "old" functions (from the Mambo days) have been marked as deprecated and are only available when the "Legacy Mode" is enabled. This means that all existing components for Joomla! 1.0.x will only run (IF they run) in Legacy Mode.
This also applies to VirtueMart. Current VirtueMart versions do neither install nor run on Joomla! 1.5 (even not in legacy mode, that's why I doubt that the legacy mode is helpful).
Anyways, we're working on making VirtueMart compatible with the J! 1.5 framework. That means that future versions of VirtueMart will run on both - Joomla! 1.0.x and 1.5.x (btw: I'm sure that this will also fix the problem with Mambo 4.6.x and the untranslated language strings - _CMN_SAVE etc.).
In the new Demo Store (demo.virtuemart.net) you can now see a working installation of a Joomla! 1.5 (nightly SVN build, 2006-11-10) and VirtueMart 1.1 (SVN version).
Have fun with it!