I would like to suggest you, to please upgrade the server version to the latest.
Old version has some bugs.
Can you suggest to what version should I upgrade my VMWare Server Console to?
I would suggest disabling the logical processors and if possible get rid of windows altogether, Linux does a better job with resources.
I have a PE2850 and disabling the logical processors gave me a "30%" boost overall with windows, after installing linux on this machine it appeared to be twice as fast overall.
Use VMWare ESXi as it get's installed on bare metal thereby less abstraction layer. The VMs get more RAM and CPU direct from the HOST.
By "logical processors" do you mean hyperthreading?
I'm having a similar problem where I moved a couple VMs to a new faster/bigger server yet the VMs don't seem to run any faster.
The new server has HT capable quad-core Xeons and I was wondering if turning off HT might help?
vSMP doesn`t scale well with VMware Server/Workstation.
if you want to efficiently make use of your hosts power, i wouldn`t use VMware server. Have a look at ESX4/ESXi.