Symptoms
After update to Mountain Lion your Virtual Machine does not recognize CD/DVD media and gives the error message:
Unable to connect to CD/DVD 1Cause
The issue is caused by the fact that the CD/DVD device fails to be properly unmounted from the Mac side when trying to pass into the Virtual machine.Workaround 1
1. Eject any CD or DVD media from the drive2. Go to Virtual Machine menu > Configure... > Hardware > CD/DVD 1 and set it to Default CD/DVD
3. Insert your CD or DVD media to the drive
Workaround 2
1. Put your CD/DVD disk in Mac CD/DVD-rom.2. Open Virtual Machine Configuration by clicking on Virtual Machine menu > Options > Sharing > Custom Folders... >

Click on + > find the mounted CD/DVD image in Finder and select it > click Choose > OK.

The CD/DVD media will be mounted to your Virtual Machine, you can access it from My Computer in Windows.
No
Yes