After installing VMware Server on Hardy heron, if you find that your virtual machine cannot detect any USB devices on the host, that is because Ubuntu has removed the support for /proc/bus/usb/*.
The following is the way to solve this issue:
Open up a terminal and type
gksu gedit /etc/init.d/mountdevsubfs.sh
In the window that pop up, scroll to line 40 and look for the following code:
#mkdir -p /dev/bus/usb/.usbfs
#domount usbfs "" /dev/bus/usb/.usbfs -obusmode=0700,devmode=0600,listmode=0644
#ln -s .usbfs/devices /dev/bus/usb/devices
#mount --rbind /dev/bus/usb /proc/bus/usb
Uncomment them by removing the ‘#’ infront of each line of the code.
Save and exit.
Restart the module
Done. Your virtual machine should be able to detect USB device now.
(The above step will apply for VirtualBox as well)