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trying to run the eeepc vmx will obviously fail because the vmdk file cannot be found. the sdk documentation talks of a script called "vmware-convert", but it obviously assumes that you are running linux? so how can I convert the ISO file into VMDK, or maybe there is another trick I could use to get the eeepc running on my VMWARE on Windows?
Yes, you have to run Linux, i.e., install the SDK to get that tool.