VMWare can be kinda icky with floppies. Have you recompiled your kernel
lately? Anytime you recompile your kernel you'll have to run vmware-setup.pl
after rebooting to recompile the VMWare modules for your new kernel. 

Try making an image of on of the floppies (dd if=/dev/fd0 of=flopp1.bin) and
setting up that image as a floppy (Type = file instead of Device) 

If the floppy was mounted before you powered on your VM, the floppy device
will be "disconnected" in VMWare. 

First things to come to mind...

--
Andy Zbikowski, Sys Admin   | (WEB) http://www.ltiflex.com
LTI Flexible Products, Inc. | (PH)  763-428-9119 (EX) 132
21801 Industrial Blvd       | (FX)  763-428-9126
Rogers, MN  55374           | (PCS) 612-306-6055