I tried updating it to the new 10.8 DP 1 and everything appears to work fine. It installs, reboots and does the full installation and says it was installed successfully.
However, when It does it's final reboot (first boot into 10.8) the boot hangs at the Grey screen Apple logo with a forever spinning spinner.
I tried the "update to 10.7.2" fix before the 10.8 installation rebooted but that also didn't help.
Anyone have any ideas or tips or got past this problem?
My .vmx is attached if anyone wants to look.