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VMWare Fusion 5.0.2 on CAC enabled iMac with Snow Leopard 10.6.8 (host) with WIN 7 (64bit) Causes iMac to go into screen saver mode when VM is started.

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Im running VMWare Fusion ver. 5.0.2 on an Mid 2010 iMac with CAC authentication (USB CAC reader). I was successful in installing WIN7 (64bit) but now everytime I start the VM my Mac goes into screen saver mode, and will not allow me to log back in with my CAC. I've tried chosing all 3 options on what to do when the USB controller is enabled and all of them end up with the same result, launching the screen saver on the iMac. The only way I can get the VM to run is by disabling the USB controller, which defeats the entire purpose as I need the CAC reader to access certain CAC enabled websites inside IE in Windows 7. I was able to trick the VM by unplugging the CAC reader (usb) one second after starting the VM. After 10 seconds or so I re connect the CAC reader and I am able to log into the Mac and see the VM starting up. Once I get to the log in screen I can log in as admin and see that the smart card service is running in services. I am using ActivClient for CAC reader software, when I launch the ActivClient troubleshooter it recognizes the Smart Card reader but says that no Smart Card was detected.  VM recognizes the Smart Card reader also, but I am only able to choose the "shared" option, which does not allow the Win 7 VM to acknowledge the CAC either. I also verified in Device manager abd the smart Card Reader is there. Tried updating driver to no avail. The second I enable the Smart Card reader in the settings of the  VM, while logged in as admin I end up with the same result, screen saver mode on the iMac and no way to get back into it unless I perform a hard reboot on the Mac. Any help would be really appreaciated guys.


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