If you plan to use Windows 7 or Windows 2008 R2 as a guest operating system, do not use the SVGA drivers included with VMware Tools. Use the standard SVGA driver instead.
To deselect the SVGA drivers installed with VMware Tools:
- When you install VMware Tools, select VMware Tools Custom Install and deselect the SVGA driver.
Alternatively, remove the SVGA driver from the Device Manager after installing VMware Tools
VMware ESX 4.0.x
VMware ESXi 4.0.x Installable
Source: KB 1011709