I'm experiencing this same problem. In my case, I accidentally suspended the machine, and when I unsuspended it, I found the mouse and keyboard to be broken. Inside the VM window, the pointer turns to a hand, but clicking does nothing. At the bottom of the window, the message about clicking in the window remains constant. (I seem to remember it changing as I moved the pointer in and out of the window as VMware Tools did its thing.)
I tried re-suspending the machine and bringing it back up, but that did nothing, as did restarting Fusion itself. Using the Send Ctrl-alt-del command caused the task window to come up as expected, but I was powerless from there. I then used the Virtual Machine menu to restart the machine, but no change. It was about then that I found this thread. I checked for SecureInput processes, but got nothing (I then turned Secure Keyboard Entry on in Terminal and re-ran the command as a cross-check, and it indeed picked up on Terminal's use. I then turned it off.) I also don't see anything being reported in the console.
Here's where I have some new information to offer. While the keyboard and mouse are broken in my normal full-screen mode and in window mode, I discovered that they do work in Unity mode (which I hadn't used in probably a month or more). While not ideal, this does at least let me get some work done until VMware can fix this, and it may afford others the same.
I'm running Fusion 1.1 build 62573 under Mac OS X 10.5.1 on a Mac Pro. I reinstalled Tools once I discovered I could do so in Unity mode, to no effect. I keep Fusion running 24x7 in its own space, almost always in full-screen mode on a second monitor. My VM machine is running Win XP Pro SP2, and I created it myself. I haven't tried 1.1.1 yet - I'm waiting to try that when I have more
time to figure out how its partial keyboard mapping will affect my
setup, since I long ago swapped the command and control keys at the Windows level to preserve my sanity.
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