Some people have reported they ran into an issue when trying to upgrade to VMware 2.0 and the error was during the install stating: Error the system administrator has set policies to prevent this installation when installing.
The best fix or work around is this, it worked for me:
Click Start -> Control Panel
- Open Administrative Tools
- Open Local Security Settings
- Click Software Restriction Policies
- If no software restrictions are defined, right click the Software Restriction Policies node and select New Software Restriction Policy
- Double click Enforcement
- Select “All users except local administrators”
- Click OK
- Reboot the machine
- Install VMWare 2.0 and it should proceed with no issues.
Good Luck 🙂