I had this problem in Server 2008 R2. The VMWare Tools installation did not install the VMWare SVGA II Video Driver. I had a Vista VM working correctly and knowing Server 2008 and Vista are similar I did the following: went to the server 2008 box, Device Manager, Display Adapters, Update Driver Software, selected browse my computer for driver software and searched the Vista box. It found and installed the VMWare SVGA II Video Driver. Not sure why the VMWare tools didn't install but this fixed my slow/choppy video.