After installing the vmware 2.0 server I thought I'd check if there was a change with the vmware-toolbox.
You can install it by going to:
Installation -> Fedora 9 -> right hand menu called Status
Click on Upgrade/Install VMware Tools
This will bring up the vmware tools rpm, install it and run /usr/bin/vmware-config-tools.pl
Select all the default settings (if you mess up I think you can select -c and it will try to compile it for your kernel).
After all of that I found my mouse wasn't clicking where the cursor was. It was off by an inch depending on which side I entered the linux window. If I dragged and selected, the selection box was on another part of the screen.
Look at /etc/X11/xorg.conf There are a bunch of new vmware settings that weren't in the previous versions. I don't have time to take apart the settings, but it looks like something is up with the vmware mouse drivers.
I copied an old xorg.conf.old.1 (probably auto backed up by vmware-config) into xorg.conf and it cleared up the problem.
Downside is if you don't use the vmware settings in xorg.conf, your system will automatically boot with vmware-toolbox and take up a spot on your toolbar. Using the vmware settings in xorg.conf seems makes everything automatic.