Glad to hear that is working for you. What are you thoughts about ProE's speed with Fusion 4? Version 4 was supposed to provide a respectable improvement.
I have a Tech Support Request working. They were able to provide a temporary solution. Here is an extract of the email. Straight off of the PTC website.
Please find the extract from the following documents:
http://www.ptc.com/products/proe/studentedFAQ1.htm
I am having problems running the Creo Elements/Pro Student Edition. Are there any known problems or special installation procedures that I must follow?
1. The Creo Elements/Pro Student Edition requires an NTFS File System. In many cases Windows XP Home Edition is setup with a FAT File System out of the box. The file system may need to be converted to NTFS if not already done.
2. Try setting the config.pro option "graphics win32_gdi" or "use_software_opengl yes".
Setting the option "graphics" to "win32_gdi" did the job for me. This essentially bypasses the 3D graphics acceleration for ProE without the big penalty in GUI performance. I upgraded to Fusion v4 / Lion / Mac Pro 5,1 (dual quad-core) from Fusion v3 / Snow Leopard / Mac Pro 1,1 (dual-core). In this mode I see absolutely no increase perfromance or speed with ProE WF5 over my old system. I think it is just a smidge slower. I was already running a NTFS File System
For the moment it is usable. Hopefully the VMware folks will find a fix soon so I can switch off the win32_gdi solution.
Mike