Running Ubuntu 8.10 as both a host AND guest here with VMware Server
2.0.0 and I can definitely confirm the bug.

The suggestion of adding vmxnet to /etc/initramfs-tools/modules followed
by an update-initramfs -u in the guest works perfectly for me.  Network
fires right up.

--Ian.

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network interface does not come up after installing open-vm-tools
https://bugs.launchpad.net/bugs/289921
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