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VMware: Can’t run 64 bit guests? Read this!
Yesterday one of my former co-workers sent me an IM asking for help with VMware on a PowerEdge 1950. He had Googled for the problem and found my blog. I suppose I may be an "expert" at VMware on the PowerEdge 1950. 
Anyway, he found that when he powered on a 64 bit guest, VMware would error out complaining that he couldn't run 64 bit guests on his host. Since the guest OS "sees" the same processor as the host machine, this shouldn't happen. Fortunately, it's a simple fix.
Go into the BIOS in the server and go to CPU Features. Make sure that VT (Virtualization Technology) is enabled. It comes disabled by default on the PowerEdge 1950. Reboot the box and your 64 bit guests should boot up happily.