Wacom Intuos4 table not working with VMWare 4.xx

Problem:  Recently upgraded to Mac OS Lion and VMWare 4.02 and all seems to be working well except my Wacom Intuos4 tablet in full screen mode.   The pointer will work for a few seconds to a minute and then will hardly move.   The actions are much like a optical mouse on a reflective surface.   A regular USB mouse will work just fine.  The tablet does work fine in Unity but in window or full screen mode I have this problem. 
Have tried the following:

1.  Updated the Wacom driver on the Mac side:  No luck
2.  Installed the driver on the Windows 7 side without any luck
3.  Set the device to connect to the Mac first in the VMWare preferences:  Didn’t work
4.  Set the device to connect to PC first in VMWare preferences:  Didn’t work
5.  Set the compatibility mode within the VMware preferences back to version 3:  Didn’t work.

Any ideas?  Because I’m a a loss.  This is obviously a problem with how VMWare works with Lion but not sure how….

UPDATE:  VMWARE now has instructions on how to fix this problem.  Just one line in the .vmx file.  Link below:


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