I am running the latest version of Fusion with the Tools updated and more recently repaired to try and fix my issue. Also running latest version of OS X, all software updates applied.
I run Windows XP (not from Boot Camp) always in full-screen mode.
My problem is that recently my copy and paste between host and VM has stopped working. The Copy and Paste in OS X works within OS X, and the Copy and Paste in Windows XP works within Windows - they don't however Copy and Paste between the two.
I can copy some text and OS X and paste it into OS X but if I paste in Windows nothing happens. Then if I copy text in Windows and paste it in Windows it works but pasting back in OS X pastes what I copied in OS X. The two systems seem to work indepentant of each other.
Any suggestions for a fix?
To add to what Woody said, we're aware of a bug in the 2.0.1 Tools which can cause Tools to not work if you have badly formed registry keys. It's fixed internally and will be available in the next release (but before you ask, I'm not allowed to say when that will be); as a workaround for now you can try the 2.0 Tools.
A bit of a pain but I have uninstalled Vmware Fusion and reinstalled it, then I reverted back to a backup of my virtual machine and copy and paste is working again.
Thanks for your help and suggestions.