I think I am facing a similar problem.
Guest: Win XP
I had Ubuntu 8.0.4 and VMWare 1.X. Upgraded to Ubuntu 8.10 and VMWare 2.0 and started facing issues.
1. Could not hit Ctrl+Alt+Del to login to Win XP. As soon as I hit the 3 keys it 'releases' control from the guest to the host. I have currently set up autologin for the win xp to by pass this issue.
2. Arrow Keys, Insert, Home, Page Up, Page Down, Delete, End dont work. The corresponding keys on the numeric pad when Num Lock is turned off work fine.
Any help would be appreciated.