I have installed VMware Tools, but it is still not working. While installing VMware Tools it says I have to have some packages like make, source kernel (I don't remember the exact package names) and a few other packages to enable some features in VMware. I installed those also, but I'm still not able to drag and drop files from the Windows 7 host to the Ubuntu guest OS.
Which version of VMWare are you running? Have you enabled the sharing of a temp folder? IIRC you need to have one share enabled for this to work. Hope the above link helps.