It is basically as you describe. A VM on Host A with a local USB device can be vMotioned to Host B and the VM will still have access to the USB device in Host A (i.e. the USB communication is passed between Host A and B to maintain the VM's connection to the device). If you power down the VM though, and restart it on host B the connection to the USB device is lost.
Dave
VMware Communities User Moderator
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