So, I have been using Xubuntu as a guest OS under VMware. I have also suffered the annoyance of a scrollwheel mouse that hasn’t been so scroll like. I found a nice artical on exactly how to get the wheel scrolling again. http://www.electrictoolbox.com/enable-mouse-wheel-scrolling-kubuntu-vmware/ .
Only thing I would add is to remember to backup you xrog.conf file before modifying it. like so in a terminal.
sudo cp /etc/X11/xorg.conf /etc/X11/xorg.conf.old
thanks Chris Hope