Thanks for pointing this out, I was trying to update VMware Tools, instead it's the Windows Driver that needs to be manually updated with drivers loaded by VMware Tools on the hard drive, from "Standard VGA Graphics Adapter (Microsoft)" to "VMware SVGA 3D", now no lagging on Windows 2008, feel the same as RDP :smileyhappy:
How about other OS like Redhat, Ubuntu etc, do we need to go through similiar procedure?