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It looks as if your guest operating system has smaller dimension settings, probably 640x480. After installing your guest OS, try installing the VMWare tools, or setting the screen size manually using the graphics settings in the guest, not your actual OS. The VMWare tools adds resizing to your guest OS.
More info is here from VMWare:
There are two ways to work around this problem.
If your host computer's screen resolution is high enough, you can enlarge the window, then choose Fit Guest to Window.
If your host computer's screen resolution does not allow you to enlarge the window enough, manually set the guest operating system's screen resolution to 640 x 480 or larger.
If he's working on text only, then vmware tools will not give him a larger screen. Your solution will only work on graphical environments like X11. – Marcelo – 2014-08-08T19:23:25.567
Thank you for your reply, whatever size the window is, I cannot press Fit Guest to Window. It's grayed out for some reason. – user3621590 – 2014-08-08T19:27:22.853
Okay that is important to know - try disabling hardware acceleration in the guest OS for a start. – Jeff Clayton – 2014-08-08T19:30:47.917
Also, look in the VMware config file for the guest - mks.enable3d need to be disabled or it will do that. – Jeff Clayton – 2014-08-08T19:31:44.823
@JeffClayton I tried disabling hardware acceleration but that didn't do it. – user3621590 – 2014-08-08T19:36:55.907
If the 3d line is enabled it also needs to be disabled (both need 'off') (the file ending with the .vmx extension) – Jeff Clayton – 2014-08-08T19:37:52.287
What guest OS are you installing, if you don't mind me asking? And is it text-based-only like Marcelo was suggesting? – Jeff Clayton – 2014-08-08T19:41:52.987
That's the screen size for the console. Are you working on a graphical environment (X11) or text only? – Marcelo – 2014-08-08T19:21:35.133