Share Folders with Ubuntu Virtual Machine - Easy Guide

Facilitating Data Exchange with VMware Workstation Shared Folders
VMware Workstation offers a convenient feature for establishing shared folders, enabling seamless data access between your virtual machine and the host computer. This functionality significantly streamlines tasks, particularly when installing software that would otherwise require extensive download times.
Successful operation of shared folders necessitates the installation and proper functioning of VMware Tools within the virtual machine environment.
Verifying VMware Shared Folders Module Status
The status of the vmhgfs module, responsible for VMware shared folders, can be checked using the following command in a terminal:
lsmod | grep vmhgfs
If the command returns no output, the module is not currently loaded. To load it, execute this command:
modprobe vmhgfs
Should this command result in an error, it likely indicates that VMware Tools are not installed. Installation of VMware Tools is then required before proceeding.
Configuring Shared Folders in VMware Workstation
Within VMware Workstation, navigate to the virtual machine's Settings window. Subsequently, select the Options tab. This section provides access to the shared folder configuration settings.
Initiate the configuration process by clicking the Add button, which will launch a configuration wizard. Proceed by selecting Next to advance to the following screen.

The Name field defines the name of the shared folder as it will appear within the virtual machine's file system. Choose a concise and descriptive name; for example, the folder might be mounted at /mnt/hgfs/mydrive/.
Select the desired host folder to be shared and then click the Next button to continue.

To prevent accidental modifications to your host files from within the guest operating system, you can enable the read-only checkbox. This is a precautionary measure, especially when dealing with files currently in use.
Typically, a virtual machine restart is not required. The newly configured shared folders should become immediately accessible under the /mnt/hgfs directory.

The setup process is now complete. If you encounter issues, ensure that VMware Tools are correctly installed.
Compatibility
This procedure has been successfully tested on Ubuntu Dapper and Ubuntu Edgy Eft distributions.
Troubleshooting Note: In some cases, firewall settings may impede communication between the virtual machine and the host computer. Review your firewall configuration if you experience difficulties. Thanks to a commenter, burkhard, for highlighting this potential issue.