Detail
This is similar to the keyboard problem (search for vmware keyboard here) - in that resetting the option is owerwritten by vmware-config.pl. This is to remind me.
Basically - vmware player is slow to restore - taking like 5-10 minutes after the XP window comes up with a small progress bar in the lower right of the screen. Found a way to disable this.
Open workstation (as root) and go to Edit->preferences->priority - and uncheck the only option there related to background snapshots. This seems to change add the following 3 lines to the file /etc/vmware/config (same place we edited for keyboard):
prefvmx.useRecommendedLockedMemSize = "TRUE"
mainMem.partialLazySave = "FALSE"
mainMem.partialLazyRestore = "FALSE"
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