You make it sound like you HAD this working once, which is pretty amazing. You are posting to LQ, but you have VMware and Windows 7 in the stack - I am going to go out on a limb and say "you don't have a Linux problem."
Make sure BT say this thing will do wireless. Problems like infinite hang show up if the wireless card won't support promiscuous mode. If the card is on the BT/airmon approved list, it is still possible that Windows won't support the mode with standard drivers. Lastly, can you back up 2 steps and run a BT "live" CD to get it to fly on this system?