I'm experiencing the exact same problem.  My frustrations are documented
in these Ubuntu threads:

http://www.ubuntuforums.org/showthread.php?t=198879
http://www.ubuntuforums.org/showthread.php?t=34957

There I have listed the hardware I am using and version of VMware
workstation.  I agree that there is something wrong with Ubuntu 6.06
Server CD and Windows VMWare.  I still have not been able to resolve
this problem.  Have you had any luck?  Feel free to contact me via
email.

Nick

-- 
Ubuntu Server LAMP 6.06 in VMWare on WinXP hangs after installation
https://launchpad.net/bugs/48284

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