How do I install VMware Tools in an Ubuntu VM running in VMware Fusion?

lilott8's answer is correct, here are a few more details:

You want the instructions for the "Tar Installer": http://www.vmware.com/support/ws55/doc/ws_newguest_tools_linux.html#wp1127177

If there's nothing at /media/cdrom0, check to see where the CDROM is mounted by entering into the terminal: mount

This will show a list of all mounted filesystems. If the CDROM isn't mounted, try: mount /media/cdrom0

EDIT: I'm not sure why nothing is showing up in the CDROM. Try (as root) to umount it and remount it?

sudo umount /media/cdrom1
sudo mount /media/cdrom1

EDIT2: vmware-toolbox is only for X11. It adjusts the display size to match the window size and other such things. TO confirm that VMware tools are properly installed and running, restart them:

/etc/init.d/vmware-tools restart

If you are told that they are not (properly) configured and to run vmware-config-tools.pl, then they are not properly installed and you should run that script.

For Debian/Ubuntu systems I generally prefer to use the open vm tools packages within the repository. It is easier and they work fine.

Install by sudo apt-get install open-vm-source open-vm-tools. Then build the kernel modules by running these two commands.

sudo module-assistant prepare open-vm
sudo module-assistant auto-install open-vm

I know on some distros you need to pull the tar.gz file from the cd, un compress it, then run the ./vmware-install.pl.