This is no surprise...but I am able to get xorg to work by removing the
package xserver-xorg-video-vmware (Ubuntu's video driver for VMware
guests). It seems that the problem may be specific to the package
xserver-xorg-video-vmware. Of course, with the generic driver X11 is
extremely slow.

(Unfortunately, even after xserver-xorg-video-vmware is removed, VMware
Tools will still not attempt to install its version of the driver,
because it expects Ubuntu to provide it.)

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X11 (xorg) fails to start in natty on vmware
https://bugs.launchpad.net/bugs/676759
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