Today I’ve upgraded my VMware Workstation to the new version 7.0. After upgrading alle the VMware tools on my VM’s, the “Fit guest now” option didn’t work anymore….! After some trouble shooting I found the solution to fix this. You have to edit the .VMX file of your VM’s.
Change the following rule:
Old Situation:
virtualHW.version = “6″
New Situation:
virtualHW.version = “7″
After a reboot, everything works fine again! 
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