OK,
(Please note the corrected path here - /etc/pam.d/vmware-authd instead of 
/etc/pam.dvmware-authd)

I went for it and I too confirm that the below fixes it on AMD64 Gutsy:

replace the pam configuration in /etc/pam.d/vmware-authd to read:

auth sufficient /usr/lib/vmware-server/lib/libpam.so.0/security/pam_unix.so 
shadow nullok
auth required /usr/lib/vmware-server/lib/libpam.so.0/security/pam_unix_auth.so 
shadow nullok
account sufficient /usr/lib/vmware-server/lib/libpam.so.0/security/pam_unix.so
account required 
/usr/lib/vmware-server/lib/libpam.so.0/security/pam_unix_acct.so

#%PAM-1.0
@include common-auth
@include common-account

-- 
vmware server will not connect remotely
https://bugs.launchpad.net/bugs/112937
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