Using VMware Server 2.02, I set up a new VM (Windows XP Pro) applied all of the updates, added Windows addons from the install CD, etc... I got it to a stable point and up through that point I was able to access the CD-ROM drive (E: on my host).

What I never did before was install "VMware Tools" and since it claims to give better mouse and video support, I gave it a shot. What it does is it places the install package in a virtual CD-ROM drive. I ran the install, no errors and it wants a reboot.

I log back in after reboot and pop in the install CD for Microsoft Office 2003 and I receive the message "Please Insert A Disc Into Drive D:". Drive D: would be the next logical drive after the C: drive where I chose to install the OS. The message box sits there and if I click "Cancel", to return to Windows Explorer, the status bar seems to blink ever 1/2 second - as if its polling for a CD-ROM drive or something.

No bangs or exclamations in the Device Manager for any hardware.

I had taken a snapshot prior to the VMware Tools install and upon restoring it, the CD-ROM is back. I made copies of two other VMs, installed the VMware Tools on those VMs and both experienced the same issues: Windows 2003 Server and Windows 7 (32-bit).

Has anyone seen this issue and know of a fix for this? It would be nice to have the better graphics and better mouse control AND use my CD-ROM drive as well! Thank you.