I am having the same problem, and cannot find a solution:
1) VM Host is Windows 2008 R2 Standard (phys-srv1) (running VMWare Server 2.x)
2) VM Store is Windows 2008 R2 Standard (phys-srv2)
3) VM is Windows 2008 Standard (vm-srv1)
I am getting multiple error dialogs in the VM about VMWPropChange.exe failing.