What do you think?
VMWare Fusion and OS X 10.5.7
The latest version of VMWare Fusion (2.0.5) has a conflict with the ATI graphics drivers. This means 3D acceleration has to be disabled when running Windows under OS X.
For more details see this post on the VMWare website: Note to OS X users.
My version was running under the previous version of Fusion and it is only updating to the latest version that 3D acceleration has broken. VMWare say the fault lies with Apple and ATI.other page