I had the same problem, but now I was able to install VMWare workstation 8 successfully on my Windows 7 32 bit laptop with the above said steps.

1. I re-registered the necessary files rvgsvr files in command prompt.
2. I deleted the registry entry L from HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings\Zones\
3. I copied the installation file to the system drive(C:).
4. Then I was able to install the vmware.