VMware notes:

Problem: Cursor stuck in center of screen

• Guest OS: Windows XP SP3
• Host OS: Linux CentOS 5.2
• vmware : was 1.0.6, broke mouse after reinstall, tried 1.0.8 and 2.0
• Solution: from vmware enable installation of vmware tools, then select console with XP in it, and use tab, arrow keys & enter to open exploder , then again to open vmware-cd and install vmwaretools. You may need to fix the protocol for X11 server mouse in /etc/X11/xorg.conf, to something a little more generic, like ImPS/2, but not auto.