On my Pentium 4 hack, installing VMWare Fusion 1.x.x used to give kernel panic. Thats all. Never worked.
VMWare Fusion 2.0 gives kernel panic when installing as well, at the very same time. This time, it shows kernel panic each time I boot :S
Booting into safe mode and uninstalling VMWare solved the problem.
On my notebook hack (dual core) it is working flawlessly

loving the new 3d support

:D