Security Tip: Disable Copy and Paste operations between the guest VM operating system and remote console by providing the following advanced parameters for the VM’s configuration (stored in the .vmx file):
isolation.tools.copy.disable = true
isolation.tools.paste.disable = true
isolation.tools.setGUIOptions.enable = false
Read more at: http://www.vmware.com/files/pdf/vi35_security_hardening_wp.pdf
Update 11/30/10: The disabling of copy/paste via the remote console is now the default out of box behavior as of vSphere 4.1 as a security hardening measure.
Update 8/18/15: VMware KB describing VM and host level configuration Clipboard Copy and Paste does not work in vSphere Client 4.1 and later (1026437)
