“VMware Tools is a suite of utilities that enhances the performance of the virtual machines guest operating system and improves management of the virtual machine. Without VMware Tools installed in your guest operating system, guest performance lacks important functionality.”
This article assumes that you already have vSphere installed with a virtual instance of Ubuntu Server 10.04 installed as a guest.
In vSphere client select VM > Guest > Install/Upgrade VMWare Tools
Update your Ubuntu installation
sudo apt-get update && sudo apt-get upgrade
Install build-essential, binutils and the headers of your current kernel
sudo apt-get install build-essential binutils linux-headers-$(uname -r)
Mount the CD inside of your Ubuntu instance
mount /dev/scd0 /cdrom
Untar VMWare Tools
tar -vxzf /cdrom/VMWareTools*.tar.gz -C /tmp
Install VMWare Tools
You will have to redo this each time you update your servers kernel.
Official documentation can be found here.