I've just created a local machine->VMWare Image (Windows 2000 Professional) and everything has worked fine apart from the graphics. Currently, the image boots and loads a default 16bit graphics card driver. I've installed the proper graphics card drivers inside the image (ATI X550/X600 256MB - Yes, it's very old) and still the same issue. When I try to install VM Tools, a ATI program loads saying the ATI Graphic card driver software needs to be reinstalled.
Everything works fine on the original local machine.