Atlast, atlast...after days of struggle and research found the solution.

My environment: Windows/XP Host and Guest: Ubuntu 11.04 Natty Narwahl under old
vmware player 2.05

In terminal mode:

sudo mkdir myshare ( under /mnt/hgfs )

sudo apt-get install open-vm-tools
sudo apt-get install open-vm-dkms

(once above completed successfully)

Tested mounting the share.

sudo mount -t vmhgfs .host:/MYSHARE/ /mnt/hgfs/myshare -rw

(once the mount was successful, go into Places ---> Computer ---> File System
(and find directory mnt/hgfs and you should find your shared folders)

Now that all is good edit /etc/fstab

gksu gedit /etc/fstab (and to the end add these lines..)

.host:/MYSHARE/ /mnt/hgfs/myshare vmhgfs defaults,ttl=5,uid=1000,gid=1000 0 0

MYSHARE in above statement is my Share Name in VMX configuration file or my
windows shared folders.

Now shutdown Ubuntu and Reload under vmware. Yiphee, worked fine.

Disclaimer: These instructions worked fine for me ...don't know about you. Good
Luck!