I gave up on VMWare 7.1.3 several months ago because I was getting this, or a very similar error. I have now built up a brand new machine (Dell OptiPlex 990 with a Core i7-2600 and 16GB of RAM) from scratch, with all of the latest everything: Windows 7 Enterprise x64 with SP1 and all Windows updates through today, Visual Studio 2010 Ultimate with SP1 and VMWare Workstation 7.1.4. So, I decided to give it another try.
I was very dissappointed to find that I am still getting the following error when launching Visual Studio 2010 with Service Pack 1 and VMWare Workstation 7.1.4:
The Add-in "VMDebugger" failed to load or caused and exception. Would you like to remote this Add-in?
If you choose yes...
Error Message: The parameter is incorrect.
Error number: 80070057
The obviously renders the virtual debugger useless, which I see as one of the major "selling points" of Workstation for a developer. It also dramatically slows down the startup of Visual Studio. And, as as aside, in the testing I have done, selecting Yes to remove the add-in does not actually do so, so the problem remains.
I had to use the VMWare Workstation installer to successfully remove the Debugger add-in.