HOW-TO start VMWARE Server on Windows Vista or Windows 2008 Server
It presents you with that dialog (as opposed to the «Local»/Remote» radio selection) because the VMWare services aren’t running on the host.
I haven’t specifically tried VMWare Server on 2008 yet, but it sounds like the driver signature enforcement might be killing the services on startup. The same exact thing happens on Vista 64-bit, which I have been able to get working.
Completely uninstall VMWare Server…tell it to remove the license. Go through and delete all its crap that it leaves behind (mostly C:ProgramDataVMWare). I’d even go so far as regedit, search «vmware» and delete anything there too.
Then reboot with Driver Signature Enforcement disabled (as Windows boots up, press F8, select «Disable Driver Signature Enforcement»).
Then install VMWare clean. Reboot and again select to disable Driver Signature Enforcement.
See if VMWare works now.
You must disable Driver Signature Enforcement every time you boot up.