Hello Stephen,
What is the Guest OS installed and the version of the Guest OS.
Once you click Install VMware Tools, Login to the guest OS. You should get an option to install.
If the option is not available, browse to the CD drive, Double click on the installer.
If you are installing the VMware tools on a linux machine follow the steps mentioned below in the KB1018414:
VMware Knowledge Base
Sincerely,
Ashwin Prakash
Skyline Support Moderator