As per my previous post I was faced with a serious BSOD problem.
Now this is corrected and so you do not face the same problem here are my findings
- VMWare identifies the ISO file as Vista

- The ‘optional’ admin password doesn’t seem to be optional! Enter this to avoid BSOD later.

- On file sharing I chose NONE

- Customize your settings!
- NOTE: Set the hard disk type to IDE and NOT SCSI

- Enjoy

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