I have to subscribe to a Red Hat service to upgrade VMware Tools and to hardware version 7??? That doesn't seem to make any sense.
You said "remediate" that implies that you want to PATCH Linux VM's, not simply upgrade the hardware.
That part is easy. Power off the VM, right click, upgrade VM version. Boot VM. Click VM -> guest -> install / upgrade VM tools, this will mount the CD.
Use the console to double-click the CD, run the vmtools RPM. It SHOULD prompt with upgrade, or install as new. Once it's installed, lauch terminal session for the redhat.
type:
vmtools (hit tab), it should autocomplete, vmtools-upgrade.. something like that. run that command. A bunch of stuff will go by on the screen, just hit enter (to accept ALL defaults) (or answer y/n as appropriate). The highlighted, pre-selected option will be correct.
reboot the VM.
voila, done.