The SVGA II driver can Freeze Windows Server 2008 R2 or Windows 7.
Chris Hahn sent me over this note.
The SVGA II driver installed by VMware Tools doesn’t work with 2008 R2 or Windows 7. Console sessions will randomly lockup.
According to the thread there is a WDDM driver in U1 that you can install manually to fix the problem by browsing to –
"C:\Program Files\Common Files\VMwareDriverswddm_video"
As been my experience, the VMware Community Forums are top notch and are all over this. 🙂 If you haven’t signed up for them or checked them out, you might want to.
UPDATE: There is also a KB article out on the subject.