From http://communities.vmware.com/thread/419192
(I didn’t have to reboot)
It seems that the upgrade didn’t create the file tools.conf
You can create it like this:
[logging]
log = true
# Enable tools service logging to vmware.log
vmsvc.level = debug
vmsvc.handler = vmx
# Enable new “vmusr” service logging to vmware.log
vmusr.level = error
vmusr.handler = vmx
# Enable “Volume Shadow Copy” service logging to vmware.log
vmvss.level = debug
vmvss.handler = vmx
Save it as tools.conf in the appropriate folder for the guest OS.
Windows XP and Windows Server 2000/2003
C:\Documents and Settings\All Users\Application Data\VMware\VMware Tools\tools.conf
Windows Vista, Windows 7, and Windows Server 2008
C:\ProgramData\VMware\VMware Tools\tools.conf
Linux, Solaris, and FreeBSD
/etc/vmware-tools/tools.conf
After saving and closing, restart the Tools service.
Michael Ellerbeck 