The version of VMWARE supplied with Redhat Linux Powertools in the Deluxe Edition of Redhat Linux 7.0 is not compatible
with the default kernel 2.2.16.
The VMWARE program clearly warns the end user that they must upgrade to 2.2.17 or downgrade to 2.2.15 in order that data CDROMs are
recognised within Windows NT or 98 Guest OS.
I am trying to install NT, and I cannot because the VMWARE program cant read the CDROM due to the above problem.
Perhaps you can look at this?
Fixed in errata kernel