No, if you only have 25 left in the host, reduce it in the guest. A lot!
You can't install your video drivers in the guest cause it uses something like an 8 meg ati rage pro. It's an emulated video card, not your video card.
You must have set something wrong in the hotkeys or options. Usually XP will resize itself on the first boot and all you do is go to view/ full screen. after that, if it's setup right, use the blue "[X]" at the top of VMware to get full screen.
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