Latest TP2012, just like some previous versions (I evaluated VMWare Workstation 8 and it had same bug) has distortion for "Full screen" mode under Linux host, when "Stretch guest" is activated.
My system is: Fedora 17 x86-64 (same bug existed on VMware 8 on Fedora 16), ATI Radeon 4870 running opensource xorg-x11-drv-ati-6.14.4 driver under Gnome 3 (3.4 in F17, 3.2 in F16).
When guest display's resolution is lower than host's (doesn't matter if it's just Windows desktop or some game that locks screen resolution on 640x480) and VMWare is running in "full screen" mode, after activating "Stretch guest" option image is stretched to the whole screen, however there are some small random distortions, like on fonts some horizontal or vertical lines can be doubled, or line of pixels is missing from desktop icons, stuff like that. These distortions mostly follow mouse - moving mouse cursor around makes distortions happen in some rectangle that surrounds mouse cursor. The mouse isn't only source of distortion, as some image changes can cause them too. This makes text hard to read and some graphics pretty ugly.
It doesn't depend on host resolution (changing it with xrand doesn't do anything), but visibility of these distortions increases as guest resolution drops (i.e. stretch ratio increases); for example, they are hardly noticeable in 1280x960 guest resolution (host is running 2560x1600 here), but very noticeable for 800x600 and 640x480 guest resolution. Guest is running Windows XP here, but I'm pretty sure it also happens with older Windows versions.
If the description is bad, I can try to capture video of it (it would be much more noticeable than on still image), however I don't know a good mean of doing it; if someone kindly will suggest me some linux software that can take screencast of fullscreen application like VMWare, I can try to make a video.
I tried lowering graphics acceleration level in guest and some other tricks but was never able to solve this problem.
Similar problem doesn't exist in TP2012 running on Windows host.
Also, as a side note, whenever fullscreen 3D game is running, this distortion disappears - it can run in lower resolution stretched to fullscreen and there are no distortions at all. Additionally, after exiting it for a few seconds there are no distortions on desktop - it renders perfectly and there are no distortions following mouse. It looks like VMWare changes rendering mode for 3D or something like that. Additionally, the rendering feels a bit "laggy" during this time. However, as few seconds pass, the screen flickers slightly and distortions returns.
I wonder if anyone else experiences this problem on Linux and if there is a way to solve it?