It seems that the default keyboard was setup wrongly for use in VMware for the Ubuntu 10.04 release. What actually happens is that at the boot up, the keyboard completely did not work. If this is your problem you are at the right post.
Here is the step by step on how to fix it:
1. At the login screen, click on the little man in circle icon below to enable universal access preferences. Check the first option for a virtual keyboard.
2. For some users, there is just a flash and then nothing happens. If this is the case, simply click on the reboot icon at the bottom to reboot.
3. Once the Virtual Keyboard is up, use it to login.
4. Once inside Ubuntu, the keyboard will work. Open a shell and get to /etc/default. Edit this file with whatever you prefer (pico, nano, vi etc)
5. Find the following right at the end:
This is where the problem lies. You need to edit it to:
The "pc105" is the most important line. After which, reboot if you feel like it and the keyboard will work.
6. If you hate the Virtual Keyboard, simple disable it at the login screen.