Hi njguru,
Would you please turn the 3D acceleration on and re-install the vmware Tools and see if it helps? If the problem persists, please upload the vmware.log to this thread. To find the log file, please follow the steps as below:
1. Launch the VM, reproduce the flickering issue.
2. Open VM Library, right click the VM you are running.
3. Press and hold Command key, click 'Open Latest Log file'
4. Release Command key, click 'Reveal' button, copy vmware.log to your Desktop or Document folder.
5. Upload the log file to thius thread.
Regarding the tiny screen issue, please open Settings=>Display, uncheck 'Use full resolution for Retina display' and see if it helps.
Thanks,
-Rick