First of all I didn’t fall of the face of the planet. I’ve just been really busy with work, travelling a lot.
After upgrading my kernel to 2.6.27 as part of the Ubuntu Intrepid test cycle I’ve sort of given up on VMware Workstation, considering switching to VirtualBox or kvm.
Luckily it caught my attention that VMware had released Workstation version 6.5. I installed it and lo and behold! It’s working out of the box with kernel 2.6.27. The installer also warns and exits if kvm is active.