Change the type of vNIC in the SBS'08 VM to Intel E1000 and re-try.
Please award points to any useful answer.
This answer works for SBS 2011 vSphere 5.0 as well.
If you chose VMXNET 2 or 3, you can simply remove the adapter, add it using the generic E1000, and it will work.
I went "Back" in the install wizard to the beginning ( a few hops back), then went forward again and it found everything no problem.
No need to restart the entire SBS installation.
No need to uninstall VMXNET2 or 3 either. They are way faster than e1000.
Just install vmware tools into virtual server (yes, you can install it at the point when installation reports no network adapter error. Just click browse, open computer and click oc CD/DVD drive).
When tools are installed you are asked to restart server but don't (at least I didn't, maybe I should).
Then press re-test network adapter and you're done.
Piece of cake.
Hope this helps someone.
Beautiful, that's how I describe you! My situation involved SBS 2011 but your post was my answer. Thanks for sharing.
This has been a great help thanks. You may, like me, find that the vmware tools install hangs. It hasn't. Send a Ctrl/Alt/Del and run task manager and 'switch to' vmware tools install to force the vmware installer to front focus and continue with a typical install.