The reason it didn't install is because the CD/DVD wasn't in Autodetect mode. I stopped the VM, went to the settings menu and selected the CD/DVD resource and set it to autodetect.
Trying to run the vmware-install.pl script, it aborted. It couldn't copy some of the tools over. Below is the output and the commands I used to troubleshoot the problem:
Detected X.org version 7.4.3.
Unable to copy the source file
/usr/lib/vmware-tools/configurator/XOrg/7.4/vmware_drv.so to the destination
file /usr/X11/lib/modules/drivers/vmware_drv.so.
Execution aborted.
~/Desktop/vmware-tools-distrib root # ls -l /usr/lib/vmware-tools/configurator/XOrg/7.4/vmware_drv.so
/usr/lib/vmware-tools/configurator/XOrg/7.4/vmware_drv.so: No such file or directory
~/Desktop/vmware-tools-distrib root # ls -l /usr/lib/vmware-tools/configurator/XOrg/7.4/
/usr/lib/vmware-tools/configurator/XOrg/7.4/: No such file or directory
~/Desktop/vmware-tools-distrib root # ls -l /usr/lib/vmware-tools/configurator/XOrg/
total 12
drwxr-xr-x 2 root root 4 Jun 4 05:02 6.8.x
drwxr-xr-x 2 root root 4 Jun 4 05:02 7.0
drwxr-xr-x 2 root root 4 Jun 4 05:02 7.1
drwxr-xr-x 2 root root 4 Jun 4 05:02 7.1_64
Obviously the 7.4 subdirectory doesn't exist. Looks like the script needs a mod. The question also is, why did the script detect Xorg version 7.4 to begin with.