Tony,
First forget about anything you've downloaded from VMware. The file "darwin.iso" that you've download is not the right one. It does not contain the version of Tools that is required for 10.7 Lion and will not install. Unfortunately VMware does not seem to make it easy to find and download the right version from their web sites.
However, you don't need to download a thing from VMware. Everything you need is contained in Fusion 13. Here's what to do:
Assuming you have Fusion 13 installed and the Lion VM is shut down, go to Finder on your Mac, select “Go”, then “Go to Folder…”
When asked for a folder, type in “/Applications/VMware Fusion.app/Contents/Library/isoimages/x86_x64”, then type Enter.
You will then see a list of .iso and .plist files - these are the VMware Tools files that are bundled with Fusion:
While holding the Option key, drag the file “darwinPre15.iso” to the Desktop. NOT DARWIN.ISO. This will make a copy of the file in a place that is easily found by Fusion for the next steps.
Now, switch to Fusion.
In the Fusion Virtual Machine Library, open the Settings on the Lion VM, then click on the CD/DVD drive. Use the pull-down to “Choose a disc or disc image…”
A dialog will open. Use it to select the ‘darwinPre15.iso” file that you moved to your Desktop. Then click
Open.
You will be returned to the CD/DVD setting dialog. Make sure the “Connect CD/DVD Drive” box is checked, then close the Settings window.
Now power up your Lion VM.
After you log into the VM, the VMware Tools installer "CD" should be visible. Depending on your VM’s settings, it should be visible on its Desktop, or in the sidebar of a Finder window. Open the Tools installer drive if Lion did not do it for you automatically.
Double click on “Install VMware Tools”. The installer will start.
The installer may warn about an expired certificate. If it does, elect to continue because you know what you’re doing.
When installation is finished, the installer will reboot the VM.
After reboot you may eject the VMware Tools install CD from the VM. You may also move the 'darwinPre15.iso" file from your Desktop to the Trash as it's no longer needed. You can also modify the VM's settings to uncheck the "Connect CD/DVD drive" option.
