Update: With boot-mode Legacy Only and boot order same, the vmware 5.1 DVD hangs at 'initializing scheduler..' still.
When I try the vmware 5.5 DVD, it gets past 'initializing scheduler' and then hangs at 'initializing power management...'
I have a case open with IBM and there are of no help yet. Also, I have a case open with vmware and waiting for a response...
Any other ideas?