The bug persists on the latest kernel in Intrepid (2.6.27-4). Removing
kvm and kvm_intel modules and blacklisting them is still the only way to
get vmware to work. I tested this with vmware workstation 6.5. Can
anyone confirm for player or server?

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kvm prevents running vmware player without rebooting
https://bugs.launchpad.net/bugs/252871
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