When a WMware machine is starting you can choose to boot from CD, to do an install, rather than hard disk.
The important bit is when you start the VMware image, click on the machine to get focus and press escape to get the menu shown.
Not bad - but there is another problem - SCSI drivers. The installer complained "setup did not find any hard disk drives".
So i went to VMWare who had the appropriate SCSI drivers as a floppy image file (vmscsi-126.96.36.199.flp) - In VMware settings I placed this file as the image for the floppy drive - and was then able to load the drivers by pressing F6 during setup.
In the VMware / vm /settings make sure that the floppy drive is connected :=)