I'm sorry you're having problems creating Virtual Machine from your Boot Camp partition and while I do not have a specific answer to your issue it may be helpful if you would read the following and provide some additional information that may help someone to offer other suggestions. Have a look at: "To help us help you more quickly, please read HOWTO: Ask (and Answer) Questions first."

Additionally I would boot the Boot Camp partition natively and have a look at the Event Logs which may offer some addition information to help you troubleshoot the issue. Not to disappoint you further but STOP 7B BSOD's can be extremely difficult and painstaking to troubleshoot sitting in front of the system so trying to do it through a message board can be even more exacerbating.

Also just because "giveio.sys" was the last output on the screen it doesn't necessarily mean that the issue is with it as it could be with what loads after that and it was unable to output info to the screen before is BSODed. Although a Google of "giveio.sys" was interesting in that that lots of people have had issues with it so I'd be looking at it first.

It may behoove you to search the Microsoft KB for info on how to troubleshoot this issue and I'd use "STOP 0x0000007B Windows XP" (without quotes) as a search string.

Additionally you may want to include a screenshot of the BSOD as there may be additional information other than "STOP: 0x0000007B (0x0F898B524, 0xC0000034, 0x00000000, 0x00000000)" which you may have omitted.

Last I just have to say this, because it needs to be said, VMware offers Free 30 Day Trial License for Fusion so if you just went and bought it and immediately ran into this issue without first taking advantage of a Free 30 Day Trial to see if this product was right for you and was non-problematic for how you intended to use it well... you should be more disappointed with yourself then Fusion for not trying before you buy!

Although in general limiting the hardware configuration whether physical or virtual is a valid and often used troubleshooting method in this case I would be looking more at the Event Logs and what I can modify in reference to what I find there as well as what on the system is using "giveio.sys" and temporarily disable/remove it from loading and this needs to be done from a native boot of the Boot Camp partition and not the Virtual Machine of the Boot Camp partition.

After reviewing the contents of the vmware.log I can see a few entries in the Configuration section that are definitely not what should be if the Boot Camp partition processing for the Virtual Machine of the Boot Camp partition was successful.

You need to try the following...

Follow these steps to rebuild the Boot Camp partition Virtual Machine...

Highlight the Boot Camp partition entry in the Virtual Machine Library window and then press the delete key.

Next close Fusion (From the VMware Fusion menu bar not just closing the Virtual Machine Library window)

Next delete the "/Users/${USER}/Library/Application Support/VMware Fusion/Virtual Machines/Boot Camp" Folder.

Reboot your Computer.

Start Fusion and the Boot Camp partition entry on the Virtual Machine Library window should reappear, highlight it and click Run.

Note: If Boot Camp partition entry does not appear on the Virtual Machine Library window after a minute or so then close Fusion and reopen Fusion. It should now appear at the bottom of the list.

Next an Authenticate dialog box appears. "VMware Fusion requires that you type your password." Enter your Name and Password then click OK. (This is necessary to unmount the Boot Camp partition for Fusion to have direct access to it.)

Next you should see a Boot Camp partition message stating "VMware Fusion is preparing your Boot Camp partition to run as a virtual machine. This may take a few minutes. This will happen once."

When the Boot Camp partition Virtual Machine boots for the first time after this VMware Tools will install/update and reboot the Boot Camp partition Virtual Machine.

The same information I saw in the first log is also in the second log are you sure you're posting the correct log? The one from the Boot Camp partition Virtual Machine and not from the Helper naos-1.0.vmwarevm?

Anyway at this point I think the next thing you need to try is to uninstall Fusion, reboot the system and then reinstall Fusion. Also delete the "/Users/${USER}/Library/Application Support/VMware Fusion/" Folder and empty the Trash before uninstalling Fusion.

Note: Uninstalling Fusion does not delete the Virtual Machine's as they are stored in a different location.

To uninstall VMware Fusion...

Shutdown, not suspend, any running Virtual Machines.

Close VMware Fusion (VMware Fusion menu > Quit VMware Fusion).

Uninstall VMware Fusion (execute /Library/Application Support/VMware Fusion/Uninstall VMware Fusion).

Delete the following File(s) and or Folder(s).

<Macintosh HD>/Library/Application Support/VMware Fusion

Note: ~ is your Home Folder.

~/Library/Preferences/com.vmware.fusion.plist
~/Library/Preferences/VMware Fusion

Reboot your System.

Install VMware Fusion

Note: There have been issues with 1.1.1 and OS X 10.5.2 so you may want to consider install 1.1.0 (62573) vs. 1.1.1.

Okay the log file is looking okay and I'd venture to say that the first two you posted came from the Helper naos-1.0.vmwarevm although at this point I think that's a moot issue.

The fact that your getting to the same point each time makes me believe it's definitely pointing to something specific and you just need to isolate what that specific thing is...

Okay let try something else...

Boot natively into the Boot Camp partition then at the Windows Desktop...

Click Start > Run > type MSCONGIG then press Enter or click the OK button.

On the General tab of the System Configuration Utility applet select the Selective Startup radio button then uncheck the, Process SYSTEM.INI File, Process WIN.INI File, Load System Services and Load Startup Items check boxes. Click the OK button then click the Restart button.

Just let the system restart and it should actually restart back into OS X.

Now back at the OS X Desktop start VMware Fusion and try running the Boot Camp partition Virtual Machine and lets see how far you get. If you happen to get to the Windows Desktop you should then be able to use MSCONFIG from within the Boot Camp partition Virtual Machine to selectively start bringing things back and hopefully you will find what is the culprit that's causing the BSOD!

Note: I have a very explicit and specific manner in which I bring things back when using msconfig and part of it is system specific from system to system based on what software is installed and is relevant to the controls provided in msconfig and the remaining is based on knowledge of the entire boot process. I'm sorry but I have never documented it thoroughly and can not off you a step-by-step guide on this so use the best judgement you can and if you're not sure just don't bring back to much to fast as it makes it harder to narrow it down.

If you can not get to the Windows Desktop utilizing the System Configuration Utility applet then I'm not sure how much more I'm going to be able to offer you as a solution to this issue so best of luck!

I see that this problem has also been reported here:

http://communities.vmware.com/thread/79462?tstart=0&start=15

and here (as recently as 2 March 2008):

http://communities.vmware.com/thread/80060?tstart=0&start=15

So I guess, I might actually be out of luck.

Both of those threads are nearly a year old and dealing with Beta Release of Fusion and Boot Camp so I wouldn't give up on it and the last post in the second thread while it was recently that means nothing at this point as well. That is until you exhaust the trouble shooting process or you just want to give up but I wouldn't give up based on what I read in those threads. I don't normally give up until there is just no other choice but that's a lot easier when one is being paid not to give up or it just becomes cost prohibitive.

If you have to I'd disable what can be disabled via the Recovery Console taking one step at a time and once narrowed down a work-a-round may be possible however until the offender is determined that will have to wait.