Has anyone else had this problem? I'm trying to install a Windows 98 SE guest to VMWare Server 1.0.1 build 29996. I get to the point where it says 11 minutes remaining and displays the dialog titled "Setting up Hardware". The dialog main says "Setup will now detect your computer's hardware and may restart your computer. If your computer stops responding for a long time, turn it off and back on".
It hangs there with the host PC's hard drive light on solid. Stopping and restarting doesn't get me any further. If I just let it sit for about 5 minutes the host (not the guest) spontaneously reboots. This is in the final step "Setting up hardware and finalizing settings" on the left bar of the setup screen after the final restart. At the poing that my host PC's HD light goes solid I can't shut it down or open up any other application. The only way to get out of this state is to force a hard reboot.