I have the same issue but with Windows XP. I've tried adjusting the display options but size doesn't change.
Currently using a magnifying glass to read the guest screen!
I did actually solve it.
Like I said, before I could just drag the whole vmware window and it resized the guest, but that stopped working.
The way I solved it was to go into settings > devices > displays, and pick a new display size. That worked fine for me.