Drag-n-Drop fails in both directions, using a Win7 x64 host and a WinXP guest. I have uninstalled VMware tools and rebooted the guest and reinstalled and rebooted, all to no effect.
Trying to drag into the guest yields the black circle with the line across it, and trying to drag out of the guest the mouse stops at the side of the guest screen.
I was testing this earlier this evening and experienced a similar problem. Are you running on a mulitple monitor or using full screen mode? I was doing both and the drag and drop process was a little sensitive in this scenario. I went out of full screen mode and moved the VM to the monitor as my main desktop and then was able to drag and drop with no issues. The drag and drop process seemed 'positional'. If I dragged down and then over it seemed to work more consistently even when going back to the multiple monitor and full screen mode.
Highlight your Guest -> VM menu -> Settings -> Options -> Guest Isolation -> confirm that "Enable drag and drop" box is checked (it is by default).
Enabled. I forgot to add it works in my Ubuntu VM.
I was testing this earlier this evening and experienced a similar problem. Are you running on a mulitple monitor or using full screen mode? I was doing both and the drag and drop process was a little sensitive in this scenario. I went out of full screen mode and moved the VM to the monitor as my main desktop and then was able to drag and drop with no issues. The drag and drop process seemed 'positional'. If I dragged down and then over it seemed to work more consistently even when going back to the multiple monitor and full screen mode.
I am using a multiple monitor setup (laptop monitor plus external display). I gave it a shot and it started working, when I exited maximized display and moved the Workstation window to my primary display.
Thanks for the tip.
Thanks for the update, I'm glad I could help!