For those interested, time machine backups with fusion now fixed : Issues Resolved in VMware Fusion 1.1.2 VMware Fusion 1.1.2 is a maintenance release that contains fixes for a variety of issues. VMware Fusion 1.1.2: Corrects a problem in which the remapping of keyboard shortcuts in Full Screen or Single Window view could not be disabled. Deselecting Enable Mac OS keyboard shortcuts now works as expected. Fixes a problem that could arise when the user attempted to run a virtual machine with the virtual CD drive connected but without a drive connected to the Mac. This problem was most likely to happen on a MacBook Air. The virtual machine no longer fails in this situation. Adds support for Windows XP SP3 when importing a Boot Camp partition as a virtual machine. Fixes a problem that prevented the user from being able to burn CDs with a USB Superdrive on the MacBook Air. Fixes a problem that caused VMware Fusion to fail when the user pressed some newly introduced keys on the new slim Apple keyboard, if the Enable debugging checks preference was set. Corrects a problem in which VMware Fusion occasionally would not return a USB device to Mac OS control when a virtual machine was shut down. VMware Fusion now makes sure to disconnect the device from the virtual machine, making it available to the Mac. Fixes a compatibility problem with wireless bridging and DHCP/routing behavior that could prevent a virtual machine from getting an IP address in certain cases. Corrects a sound problem in which only the default speaker worked in certain cases. In some cases, VMware Fusion, after being upgraded to Version 1.1.1, would fail with a Signal 10 error when the user tried to use the keyboard. This problem has been fixed. Virtual Machine Communication Interface (VMCI) no longer causes memory corruption. Version 1.1.2 contains a fix for the problem described in security advisory VMSA-2008-0005.html, section i. VMware Fusion 1.1.2 and Mac OS X Leopard Time Machine Issue Resolved A bug in the Mac OS X 10.5-10.5.1 operating systems caused the system to fail if Time Machine attempted to back up live virtual machines. To avoid this, VMware Fusion 1.1 excluded all virtual machines from Time Machine backups. Apple resolved the Time Machine bug in Mac OS X 10.5.2, so VMware Fusion 1.1.2 now allows Time Machine backups of virtual machines if the Mac is running Mac OS X 10.5.2 or higher. This may result in larger Time Machine backups. If the backups are now too large, you can manually exclude your virtual machines from Time Machine backup and copy them separately to your backup disk.