I am having the same problem with keyboard input. At first I thought it was something up with my install of the release candidate (I'd upgraded to Leopard, and then downloaded the RC while my iMac was racing between Spotlight and Time Machine on a newly attached external disk so Terminal and Disk Utility stuck while I was going to do an md5 sum of the RC's dmg) as the VMware tools disk image was broken when trying to upgrade within Ubuntu 7.10 or with the fact that the first VM I used had been suspended midflow and then copied to another disk.

I downloaded the RC again and tried both Ubuntu 7.10 and Windows XP and both had the same problem. Coming here, I did the appropriate search for SecureInput. I expected it to be Terminal as I had (at one stage) switched secure entry on and Terminal was running but I had evidently switched it off again. I found that Opera was the program that was preventing keyboard entry as it was using SecureInput. I quit Opera and am able to type into my VMs again.

In related news, the VMware Tools image is OK now (with my second download (md5-ed first)).

I've had the same issue..sort of. I'm running xp32 pro in fusion, and in full-screen mode the keyboard started to "boink" and not deliver to the VM. When I switched to fusion mode the keyboard input worked. Returning to full screen broke it again. Single window mode also works.
Leopard, RC 61385. Didn't happen before in 1.0 and betas, but today was the first day I really pushed the mac (book pro).

Do you have an ETA for a fix for this issue?

I have a MacBoom Pro 17" Intel Dual Core 4 Gb running Leopard as well as Vista via Bootcamp. I load VM Fusion successfully into Leopard and select Vista from Bootcamp - Fusion starts correctly with no errors. I have the same problem, however - when Fusion loads Vista, the keyboard does not respond in the Fusion window. My MacBook Pro is brand new and there are no other programs running - unless they are some native processes to Leopard. I have no idea, as I new to MAC since 1 week having made the conversion from PCs.
Does anyone have any sggestions - please keep in mind that I am still new to the Mac system.

I am running Leopard (OS X 10.5.1) on a MacBook Pro 15". I found that XHUB created the same problems with VMware Fusion 1.1 where I had lost keyboard input in all Fusion client sessions. Quiting XHUB solved the problem.

My thanks to the community for helping me solve this problem - quickly.