I've been spending mosto of today building some virtual machines for the QA department at work.  I used Microsoft Virtual PC to create the VMs.  Then I used VMwares stand alone converter to convert them into VMware images.  Once that was done I added them to a VMware Server (version 2).  I was finished the install by installing VMware Tools. After the machines booted back up though I found that I had lost the ability to use the mouse.  I thought this was strange as I've never had this problem before.  I did a little searching on google and found this:

Before any conversion uninstall MS VM tools.
After conversion if mouse does not work in VMware infrastructure Client console session - in my case it just disappers from the console, try to do next from http://www.petri.co.il/forums/archive/index.php/t-19387.html
" go into the registry and navigate to the keyHKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Contro l\Class\{4D36E96F-E325-11CE-BFC1-08002BE10318}
Remove the value msvmmouf from the UpperFilters Regvalue.Reboot....
tadaaa!!
If you wish you can take out the drivers completely by deleting these registry hives completely :
The driver:HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Servic es\msvmmouf
The Service:HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Servic es\VPCMapThe CopyHook Shell Extension: ( for folder access )HKEY_LOCAL_MACHINE\SOFTWARE\Classes\CLSID\{30C14BA C-122C-42ED-B319-1139DBF48EB8}\InProcServer32HKEY_CLASSES_ROOT\Directory\shellex\CopyHookHandle rs\VPCCopyHook
After a reboot you can delete the "Virtual Machine Additions" folder from program files..."

http://bsirotin.blogspot.com/2008/03/mouse-does-not-work-after-converting-ms.html

After I removed the entries in the registry everything worked as it should.