I cannot copy and paste text between Mac and Windows XP at all. As far as I know, VMware Tools is installed correctly. I have selected "Install VMware Tools" from the menu several times, and I get the message "VMware Tools has successfully been installed" each time. Any other ideas?
Nnnnno... Should it matter that I'm using an existing Boot Camp partition as my virtual machine? I know that means certain features like snapshots are disabled.
Copy and Paste is a functionality of VMware Tools and selecting the Install VMware Tools command from the Virtual Machine menu is not the way to try and correct a VMware Tools issue. You must uninstall from withing the Guest Windows OS's Control Panel and then reinstall via the aforementioned menu command. Under normal circumstances being a Virtual Machine of the Boot Camp partition wouldn't matter however since you are running Fusion 2.0 Beta 1 this could be a deeper issue and uninstalling/reinstalling may not help however I have nothing else to offer other then the link to the Fusion Beta Forum were you should be posting questions concerning issues with the Beta Release.
Copy/paste is expected to work with Boot Camp virtual machines. As Woody suggests, I would try uninstalling Tools, rebooting the guest once or twice, and installing Tools.
