I initialy had a different problem, but after resolving some permissions in the registry I also came to this problem.
http://communities.vmware.com/thread/216544
I noticed that the service wouldn't start (or it would, but it was stoppen instantly). Couldn't figure out why.
Then I started the setup again.. waited for the installer to get to the point where it was installing VMWareVMSDS, and then went into the services.msc applet. Changed the logon credentials to a user (in my case the admin account of the server, not the most perfect account, but it was essential for the installation to finish), gave the service the start command, and voila.. it would start and the installation finished succesfully.
Hope this helps a bit..
(stil going to try to run the service as the netwerk user, but for now at least I can manage my servers again)