Hi, welcome to the communities,
there are multiple KB articles dealing with your problem, for example:
http://kb.vmware.com/kb/1013989
VMware KB: Performing a Windows repair on a Windows XP virtual machine
Please try the suggested solutions.
Regards
Very simple reason for this message could be that the VM tries to boot from a non-bootable floppy image.
So before trying any repairs rule out this cause
Hi
Welcome to the communities.
some times it appear if you have stooped formatting in the middle of the process .
simple boot form ISO and format it again or copy that file to destination.
Take care!