Chris Stauffer at myITForum.com

VMWare Server 2.0 Admin install issue

I was trying to installing VMWare Server 2.0 but it kept getting this error

System Administrator has set policies to prevent this installation.

Click Start -> Control Panel

1. Open Administrative Tools
2. Open Local Security Settings
3. Click Software Restriction Policies
   1. If no software restrictions are defined, right click the Software Restriction Policies node and select New Software Restriction Policy
4. Double click Enforcement
5. Select "All users except local administrators"
6. Click OK
7. Reboot the machine 

Found the answer here

When attempting to install VMware Server on a Windows 2003 Server host, you might see the error message System Administrator has set policies to prevent this installation.
Workaround: Right-click the installer file, choose Run as, and enter the Administrator username and password. Additional configuration steps might be required. See http://forums.microsoft.com/TechNet/ShowPost.aspx?PostID=590630&SiteID=17.

Interesting that they has this problem in RC1 and RC2 and they didn’t fix it for the final release.

However it is posted in the release notes :

http://www.vmware.com/support/server2/doc/releasenotes_vmserver2.html