1. You can attach graphic images directly using Insert Image (camera icon) in the toolbar of the Editor instead of uploading elsewhere while providing a malformed URL! ![]()
2. Windows 8.1 is not a supported Host OS for VMware Workstation 7.x. So, you might need to use a supported version.
3. What version of Ubuntu are you using and did you validate the MD5/SHA1 checksum for the ISO Image you downloaded?
4. The latest release of Ubuntu that was officially supported under VMware Workstation 7.0.0 was Ubuntu 9.04 and under VMware Workstation 7.1.4 was Ubuntu 10.04. So if your using a version later then what was officially supported then having issues is to be expected although that is usually more with the VMware Tools then the base install. However that does not preclude issues with the base install
The first thing I'd do is validate the MD5/SHA1 checksum for the ISO Image you downloaded.
Next I'd download and install VMware Workstation 10.0.1, you can use it free for 30 days, and see if you can install a validated supported version of Ubuntu. Which by the way Ubuntu 13.10 is the latest supported Ubuntu release under VMware Workstation 10.1.
Firstly try to activate hardware virtualization in the guest virtual machine settings. "Hardware -> "Processors" -> right side "Virtualization Engine" -> "Intel VT-x/AMD-V". If the menu does not have this setting, try the setting "Force use of these features when available".
If enabled hardware-vt does not help and you get the kernel panic again, change too the guest type to WinNT4.0 and let the virtualization settings enabled.
An option WinNT4 works. Wonder why Other/Other64 is not working. It suppose to be used in this case.
