I've got VMWare Server 2 install on one of my machines here and I was trying to use the Remote Console (which installs as a Firefox extension) to connect to a Windows XP VM I was creating. But no dice. The keyboard and mouse inputs were not being redirected to the VM.
After trying a bunch of things I stumbled on turning Synergy off. Voila, the mouse and keyboard works as expected.
[Incidentally my recommendation is to use the Synergy+ client; the original Synergy client appears to be pretty much abandonware and the Synergy+ folks are doing a great job at fixing bugs.]
So there's my tip of the day: If you find your keyboard and mouse not working as expected with VMWare Server 2's Remote Client take a took in your system tray. If Synergy is running turn it off and see if Remote Client responds. Worked for me!