VMware Fusion 2.0RC1

Hardware Profiler info attached at bottom (ATI X1600)

I uninstalled VMware Tools via Add/Remove, rebooted, reinstalled VMware Tools, rebooted, ran dxdiag and it finished all the Direct3D tests without crashing this time (reported they all passed), but when I start TF2 it goes past the Source splash screen, then just shows blackness. I can here the title screen music, and moving the mouse around makes the mouse-over sounds for the menus, but I can't see anything. The Valve overlay screen is visible and functional if I shift + tab.

Any ideas?

ATI Radeon X1600:

Chipset Model: ATY,RadeonX1600
Type: Display
Bus: PCIe
PCIe Lane Width: x16
VRAM (Total): 256 MB
Vendor: ATI (0x1002)
Device ID: 0x71c5
Revision ID: 0x0000
ROM Revision: 113-xxxxxx-158
EFI Driver Version: 01.00.158
Displays:
Color LCD:
Display Type: LCD
Resolution: 1440 x 900
Depth: 32-bit Color
Built-In: Yes
Core Image: Hardware Accelerated
Main Display: Yes
Mirror: Off
Online: Yes
Quartz Extreme: Supported
CM753:
Resolution: 1600 x 1200 @ 85 Hz
Depth: 32-bit Color
Core Image: Hardware Accelerated
Mirror: Off
Online: Yes
Quartz Extreme: Supported
Rotation: Supported