Disclaimer:  This could be COMPLETELY UNRELATED, but...

I solved this same persistant problem on my system (Feisty 2.6.20-16) by
using the instructions at this link:

http://www.vmware.com/community/message.jspa?messageID=575305#575305

Specifically:

<quote>
Found this information from another post in the Ubuntu Linux forums, maybe it 
is relevant in other linux ditros... 

USB Devices Are Not Available on Some Linux hosts, the VM > Removable
Devices > USB Devices Menu Is Empty

In short, the problem was Ubuntu not mounting USBFS to /proc/bus/usb.

Solution: 
sudo mount -t usbfs none /proc/bus/usb 

and add the following line in the /etc/fstab file: 
usbfs /proc/bus/usb usbfs auto 0 0 
</quote>

-- 
usb change between 2.6.15-23 and 2.6.15-26 breaks working setup
https://bugs.launchpad.net/bugs/54419
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