Further comments fro m a couple of users that may help:
"Be sure that you check the USB settings in VM ware as the probe might not connect if set incorrectly. I had endless issues and later came to find that VMware had to be set to USB 2 (in my case) for my probe (i1d3) to be recognised and to read properly. As for the LS and Resolve connection, I believe I had to set VMware to share with my mac in the settings panel/Network Adapter... as opposed to wifi, ethernet, auto detect etc. none of the other settings worked for me."
"Parallels also needs to be "bridged mode" http://kb.parallels.com/4948
Spent a couple of hours on trouble shooting, also used a wired connection (not wifi) and turned off all the firewall stuff in windows. Used the ip from the mac (which showed up in LS) and it worked great. Hope this will save someone 3 hrs of head banging!"
Thanks to Danny and Clark for those suggestions!