I was setting up a new host the other day and I received a call from one of my admins letting me know that they could not copy/paste within the console; but they can copy/paste in RDP.
This is a simple fix found in KB1026437. You can make the change on an individual VM, but I think it is best to change it on the host (which applies to all VMs). I really wish the default would have this enabled.
Open a Putty session…if you don’t have putty then get it here.
1. Log into the ESXi host that you want to change.
2. Type vi /etc/vmware/config
3. Arrow down to the last line and type i which stands for “insert”.
4. Add the lines:
vmx.fullpath = “/bin/vmx”
isolation.tools.copy.disable=”FALSE”
isolation.tools.paste.disable=”FALSE”
5. Press the ESC key and then type :wq which stands for “write and quit”.
The next time each VM is power cycled it will enable the copy/paste functionality. Keep in mind that if you ever upgrade this host to a new ESXi version that this setting will go back to the default of disabled and you will have to add this line again.
Favoritevmguy 
Copy paste used to be enabled by default, but was considered a security issue and is now disabled by default.
Yeah, I think it was turned off in 4.x and above, but I still don’t have to like it…:)
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