this fixes the problem for me, mouse is now working

create this file using the bin/bash text. 
give it a name like VMlaunch.sh
make it executable
run it and it loads the VMware machine

#!/bin/bash
################################################################################
# Call VMWare Server's Remote Console in a clean GTK setup.
################################################################################

# Clean GTK setup for VMWare
export VMWARE_USE_SHIPPED_GTK=yes

# Find console executable in Firefox plugins.
vmrc="$(find "$HOME/.mozilla/firefox" -name vmware-vmrc -type f -perm -111 | 
tail -1)"
[ -x "$vmrc" ] || exit 1

set -x
cd "$(dirname "$vmrc")" && "$vmrc" -h 127.0.0.1:8333

-- 
wmware console mouse movement drops mouse at screen edge
https://bugs.launchpad.net/bugs/460531
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