I have a new (12/2008) Mac OS X 10.5.6 with VMware Fusion 2.0.1 (128865) running on the latest MacBook Pro. I am running Windows XP SP3 on the virtual machine. VMware Tools is installed and everything is working fine, except the DVD on the Mac is not recognized in the virtual machine. I am also connected to the CD in the VM (the little CD image in the lower right is enabled). In the Windows XP Device Manager, you see the DVD/CD-ROM category with a line showing a yellow "!" followed by "NECVMWar VMware IDE CDR00". The properties states, "Windows cannot load the device driver for this hardware. The driver may be corrupted or missing. (Code 39)" I have tried uninstalling the device and reinstalling. I have tried every option in Fusion settings, including automatic and specifying the physical disk. The physical disk shows as "Matshita DVD-R (UJ-868)". I have look all over the blogs and found others with similar issues, but no responses that seem to resolve the issue. My guess is that this is a driver issue on the XP side, but I can't find a VMware driver for the DVD anywhere, short of installing the VMware Tools again - which I have done. I have gone so far as extracting the VM Ware Tools ISO (windows.iso) and running the install directly in the XP system and that didn't work either. So, is this a known issue and is there a solution? Aside from user error, I suspect there *is* an issue here, but I can't get confirmation. Any help is appreciated.