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I just had trouble running VMWare player (version 3.1.0 build-261024) on Win 7 and got this error:

Error while powering on: The following error occurred when starting VMware Player.W32AuthConnectionLaunch: Reply error "The system cannot find the file "" (code: 3).".

I Googled the error and turns out the fix is to run VMWare Player as Administrator.

I decided to paste the error and fix here so this site would also include the fix :)

(I hope this get's indexed by google)

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The fix is to run VMWare Player as Administrator :)