Hmmm... grrrr....
I ran these steps:
1) Open Device Manager from Control Panel 2) Expand Display Adapters entry 3) Right click on VMWare SVGA II and click properties 4) Click on Driver tab 5) Select Update Driver 6) Select Browse My Computer for driver software 7) Browse to C:\Program Files\Common Files\VMware\Drivers\wddm_video 8) Driver will report successful installation. Reboot as requested.
Unfortunately at step 8 there's a message "Windows has determined that the driver software for your device is correct"
Standard VGA Graphics adapter. 
The folder at the location above does not have WDDM drivers in there, I only see:
vm3dgl64.dll
vm3dumgl64.dll
So I can see why Windows tells me this, any chance on getting a WDDM driver for windows 7?
Would a reinstall of VMware tools help?
--
Wil