Searching the forum for this came up with http://www.vmware.com/community/thread.jspa?messageID=539233򃩡.
I wonder why in the Virtual Machine Library Window the Display Name from the VMX isn't used? Instead, it uses the filename. According to that thread a request was filed. Are there any plans for implementing it?
It is using the Display name in the Window title bar though (if that's called the same in OSX as in Windows?).