I installed 10.7 LION on my VMware workstation tonight. Ran vmware tools, all great.
Copied the VM, installed 10.8, installs fine.
But when the login window appears, it stays at the correct resolution (display all correct) for 30 seconds or so then it looks like the display hoz sync fails and the screen becomes illegible. System still function AFAIK but I can't read it. I've tried with/without 3d accel and default and manual setting of display.
It looks like there's a known problem in VM fusion that will (one day) fix the issue, but I can't see them fixing it in Workstation.
Any clues where to look or resolve the issue?