Hello,
I think your running into the same problem that I had when downloading VMware Player 5.0.2 and then installing a Guest OS.
The problem is located in libcds.dll, which contains an abbreviated URL for the content on the software update server.
Fortunately you can correct the problem and use VMware Player to download, unpack and apply the VMware Tools.
Here is a link to the thread created with instructions for correcting the problem: