NTVDM encountered a hard error

System is Dual 3.4 GHz Xeon - 6 GB RAM - SATA HDD's

Running VMWare Server RC 1 on Windows Server 2003 Enteprise R2 Host.

VM's are Windows Server  2003 Enterprise SP1 or Windows Server 2003 Enterprise R2.

Reproducable Error:

Run Command.com from start>run

or

run Edit from start>run

or

any DOS application.

Eventually you will get an error message box titled: ntvdm.exe - System Error

With the Error Text: NTVDM encountered a hard error.

Buttons are: Close and Ignore.

Has anyone experienced this?

Is there a fix or workaround?

Thanks,

Mark Eslick