yep - the Alfa is a nice USB wireless device for Backtrack ... but not inside a VM.
I had limited success with it using backtrack but only on hosts that never had the alfa drivers installed.
We discussed the problem here maybe 2 years ago and had similar problems.
Some users also reported that the device was unstable when used inside a VM
Sorry for bad news - I stopped using the Alfa a year ago - because of that problems - and never tried with Workstation later than 7
I am using an ALFA USB WiFi device Model: AWUS036H successfully in this configuration (Windows 7 x64 Host, VMware Workstation 8). My BT5 R2 Guest is able to successfully take control of the USB WiFi adapter.
However, I never installed any additional ALFA software in my Windows 7 Host. Only plugged it in, let Windows install whatever it needed, and the connected it to the Guest. I do not use this USB WiFi adapter from my Host at all.
I have since upgraded to VMware Workstation 9. I also notice that BT5 R3 was released earlier this month. Let me test and see if this configuration still works for me...
This issue may be hardware specific. OP do you have an Asus G75 laptop?
I am using the same Alfa adaptor with the current version of VMWare workstation on Windows 7 64-bit and I am getting the same error about the device being in use when I attempt to connect it to the VM. This is on an Asus G75 laptop which has USB 3.0 ports.
Now, the same exact set-up on my iMac works perfectly. In Windows 7 64-bit, with the current edition of VMWare, the device connects properly.
This is an error with VMWare I would like to get fixed. I assume it has to do with the USB 3.0 ports.