Boot from USB drive in VMware Workstation
In VMware Workstation booting from a USB drive is not a built-in feature. However there is a handy boot manager program called Plop Boot Manager that will make this possible. You can grab it from this link.
Download the latest version & extract the ZIP file.
Now from the Virtual Machine Settings dialog box in the VM modify the settings of the CD/DVD to use the plpbt.iso file in the extracted folder. Boot the VM & you will see a screen that lets you pick USB as a boot option.