Wil,
I'm sorry I didn't get back to you with a log but I had to leave on fairly short notice and didn't want to take a chance of messing up her known state with no real time to fix it before I had to leave.
As it stands now, she does have audio on the Guest and is able to print from the Guest - two things she previously couldn't do. The only part that doesn't work at the moment is the drag and drop function between the Host & Guest. She's able to get around that limitation by sharing a folder on the Host desktop that shows up as a shortcut on the Guest desktop.
I believe the best explanation for non-functioning DnD is the fact that the 2nd instance of vmtoolsd.exe is not running as a USER process. [I'd been hoping that the problem would be resolved by the upgrade from v4 (where it first appeared) to v5. The fact it didn't is dissapointing since the problem was reported to VMware when I was still running v4 7 months ago]. If anyone can determine why that's the case, I'd be more than happy to try suggestions but the turnaround will be longer before I get back to you since I'm remote from the computer.
Thanks again to all those that took the time to work with me.
Dave