I always forget the steps involved, so here they are for reference.
1. Install the required development packages:
yum install kernel-devel gcc gcc-c++
2. Untar the vmware-tools-distrib from the "virtual" Install CD. (Don't bother with the .rpm file.)
3. cd to vmware-tools-distrib. Run ./vmware-install.pl
That's it! Except I have had to add the following lines to /etc/X11/xorg.conf to get the display to work:
There are much better instructions here.