I have the same issue and have the following workaround:
It is possible to set the resolution from a command line using 'xrandr'. Running just xrandr allows you to see the current resolution and the other valid resolutions.
From a command line you can run 'xrandr -s 1024x768' and the screen in VMware will reset to that size!
You can even set this at KDE startup by doing the following:
- click KDE start icon
- select System Settings
- select Startup and Shutdown
- click Add Program...
- enter 'xrandr -s 1024x768' in the text box
- be sure the "run in Terminal" checkbox is checked
- follow the rest of the prompts to set it as a startup command.
The next time you log in, it will start at 800x600 but at the end of the login you will see the screen resize!