For those who have this same problem. It has been explained in the VMWare Fusion 3.0 forum, but as this is not just related to Fusion, I post it here:
If you get a BSOD after installing the VMWare Tools on a Windows 7 virtual machine (mine is x64 but it seems to be also happening on x32), you will have to
to reboot with the installation ISO or CD
open a command line console on your virtual machine
go to the system drive (usually D:\) in \Windows\system32\drivers\
Rename vm3dmp.sys as vm3dmp.sys.old
Reboot your virtual machine. It should then boot properly, but VMWare display drivers will not have been loaded
Remove the Displaylink drivers which seems to be the cause for the BSOD
Go back to \windows\system32\drivers
rename vm3dmp.sys.old back to vm3dmp.sys
reboot. And you should be ok
Cheers
Thanks! Saved me hours of frustration.
Superkikim, Thanks!, had the same issue with Displaylink stuff in Workstation 12 and Windows 10 guest
Thanks!
Helped me also for VMWare Workstation 14 and Windows 10...
It is a shame that VMWare is not able to resolve this bug in their driver....
You are my hero of the day!
Thanks!
PS: I booted into SafeMode (Win10) using F8 and renamed vm3dmp.sys to vm3dmp.sys.old (without booting from recovery ISO)
Thanks for the remove displaylink drivers tip. I reverted to a pre-tools snapshot then removed the drivers rebooted and installed Tools and no more BSOD.
Still working in 2023 on Workstation 17. Thanks for sharing.