This problem may not be related to 12.10, bur rather to 3.5/3.6 kernels (I'm using mainline 3.6.2, because I understand it has better support for my ATI video card...)
The problem seems to be VMWare side, rather than ubuntu side.
I have successfully solved this problem by applying the patch found here (direct download link: vmware9_kernel35_patch.tar.bz2).
The patched is for kernel 3.5, but I'm using 3.6 and it still fixed my problem. Note, the patch's name indicates it's for Workstation 9, but it is also for Player 5.0.0
Some people in the thread linked above suggest uninstalling BEFORE upgrading to 12.10. My exact process was somewhat convoluted and may be a bit of an exception, so I am unclear if you need to uninstall or not. It may work installed the patch after upgrading. Should you want to, here are the instructions:
sudo vmware-installer -u vmware-player
sudo rm /usr/lib/vmware/modules/source/.patched
or a much more involved uninstall like this:
/usr/bin/vmware-installer -u vmware-workstation
lsmod | grep vm
cd /lib/modules/kernel_version/miscmv vm* /tmp
rm -rf /etc/vmware*
rm -r /usr/lib/vmware*
rm -r /usr/share/doc/vmware*
rm -fr /var/run/vm*`
Applying the Patch
The zip contains a .sh script. Run it. Very simple.
- For me, the patch didn't properly detect my VMPlayer 5 version (perhaps due to a botched uninstall, careful copying and pasting the contents of the uninstall process above and pasting it into the console... like I said, my process was convoluted), so commented the error text, applied the patch, and it worked.