After installing VMware tools you may still notice that the mouse is jerky and the resolution is not all that great. A little look in device manager will show that your still using the standard VGA video card.
If you select to update the driver and browse to c:\program files\common files\vmware\drivers and click open. Ensure you select to scan sub folders too. Doing this should find a shiny new driver, which is used after you reboot, giving silky smooth mouse action and a nice resolution.