Karan Batra's workaround didn't work for me (VMWare Player 4.0.4 and new install of Ubuntu 12.04 64Bit). What did was using the Xconf settings editor (Aplication Menu->Settings->Settings editor), setting the resolution by hand and then using Settings Display (the newly created resolution appears at the top of the list) to set the resolution.
Karan Batra's workaround didn't work for me (VMWare Player 4.0.4 and new install of Ubuntu 12.04 64Bit). What did was using the Xconf settings editor (Aplication Menu->Settings- >Settings editor), setting the resolution by hand and then using Settings Display (the newly created resolution appears at the top of the list) to set the resolution.