OK!
Copy/Paste/Shared clipboard from Windows Host to Linux Guest works now in my Ubuntu guest WITH A X-server / Desktop Environment running, however this is not the purpose of this question.
Apparently you can't copy/paste in headless or 'text' mode at all.
I booted the same (working Ubuntu guest, that is verified VMware tools is installed) with a 'text' kernel boot parameter appended so I booted straight into the console.
I can't paste by any common methods like SHIFT-INSERT, CTRL+SHIFT+INSERT or RIGHT-CLICK (this works in VirtualBox in headless 'text' / barebones linux distributions without "Desktop Environments" with a "Shared Clipboard") ...
I am told by someone on #vmware that it is not possible.
Which I am quite ASTONISHED to hear, if this feature is really left out of the commercial product !