hello
just some tips. i usualy update alle the firmware levels first from the server
also i always install with cd or throught remote iso mapping
i suggest you redownload an good image from vmware and burn to cd. I think somewhere using the USB to iso tool went wrong.
also you want to run vmware from USB stick? or just the installation cd on it?
also update 2 is out since 9 september 2014 so look on the vmware site if your server is supported
dont know if this is any helpfull.
good luck