I had problems install Fedora 7 on both VMWare Server 1.3 and VMWare Workstation 6. I have tried other versions of VMWare yet. The error I got happened right after the 'skipping' the disk check dialog box during the F7 installation. Usually this would start the beginning of the Anaconda GUI installation. Instead I got an '[b]Unhandled Exception[/b]' error.
Note: This was done using a custom virtual machine setup with IDE disks instead of SCSI. I've read that the SCSI disk option doesn't work with F7.
F7 will install and run on SCSI if you use the Buslogic device instead of the LSILogic device or you use the latest mptscsi LSILogic driver from LSI.
The BusLogic option is only available for 'custom' virtual machines, and then only for none 64bit kernels (or distributions). This must have something to do with SCSI drivers not being 64bit compatible yet.