From our Team Fusion blog: Windows 7 on Mac with VMware Fusion: A Practical Guide
our readers know, a great way to start testing out a new operating
system is in a virtual machine, where you can see how it works without
having to dedicate a whole physical machine.
Well guess what: this is certainly the case with Windows 7 and VMware Fusion,
too. So we wanted to take the time to share best practices on how to
make this happen, with screenshots and video of the process to make it
nice and easy for you.
The secret is to use the Easy Install but change the OS from Vista to Windows Server 2008. And in 20 minutes or so … enjoy.
Addendum: Rich Brambley at VM /ETC seemed to have no trouble installing the Windows 7 beta on VMware Workstation 6.5 by setting Vista as the OS, so not sure which way is best if you're on that platform. Check the VMware Communities for Workstation or Fusion if you're having trouble.