That is a great idea that has been given some consideration.
Bushwhacker there have been a number of fusion reactors that have been built over the last few decades. If you want to read about them you can find them here.
http://en.wikipedia.org/wiki/Fusion_power
The problem with fusion is that we have not found a way to turn it into a real power source. In order to get fusion to occur the fusion fuel must be heated to a temperature many times hotter than in the sun. Problem right now is that it currently takes more energy to heat the fuel up the fuel than the fusion process itself produces. That is why all the experimental fusion reactors consume far more energy than they produce, which is the main problem with turning it into a useful power source. That is the problem that faces fusion as of this moment.
However one must consider that in a plasma rocket it is the plasma itself that is used to generate thrust. Thus the many of the problems related to fusion as a electric power source are bypassed. I suppose if you were to make a plasma rocket that burned hot enough you could conceivably make a fusion rocket, although I do not know if anyone has tried that yet.
By the way I believe fusion rockets are used as the maneuvering thrusts and the impulse engines in Star Trek.