To install VMware on Linux, in particular Debian/Ubuntu,

1. Select "Install VMware Tools" from the VMware menu.

2. The file should mount automatically

3. Copy the VMware Tools from the mounted iso to the temporary folder

cp /media/cdrom/VMwareTools-1.0.3-44356.tar.gz /tmp/
4. Switch to the temporary folder and unpack the VMware Tools:
cd /tmp/
tar xvfz VMwareTools-1.0.3-44356.tar.gz
5. Next switch to the folder with the unpacked files and execute the installer:
cd vmware-tools-distrib/
sudo ./
6. Now you will be asked a few questions relating to installation paths etc. Choose the default value every time (simply hit enter).

7. After the installation/configuration finished you have to start the VMware Tools:

vmware-toolbox &