I'm running Ubuntu 7.10 using custom 184.108.40.206 kernel. Somehow, starting from kernel 2.6.23, VMware was unable to properly use my Windows Mobile PDA (Atom O2 Life). Every time I plugged in the Atom, VMware will spurt out "VMware Workstation was unable to claim the device" message. The issue was actually with VMware, and not the kernel. Follow the steps outlined below to work around this bug in VMware.