You can install the VMWare video driver from your package manager on Kubuntu 7, but personally I was unable to get the VMWare tools listed in the package manage to allow you to do two other important features: copy and paste from your VM to your host OS, and detect when the mouse pointer is at the edge of the screen and automatically move you out of the VM. Here are the steps I followed to get those two features working, which is not at all to say there is not an easier way.
The first step is to get the VMWare tools, which is well documented out there, for example this post. The instructions inside INSTALL are pretty clear, but some specific guidance for Kubuntu, including getting some prerequisites, can be found at the Ubuntu community site. These instructions also point out that you need to keep the toolbox running to get those features – something that I, coming from a Windows background, found confusing. I guess KDE has no equivalent of the system tray. So, just ignore the window left in your task bar while you have tools running but minimized, you need it to get the functionality described above.
Lastly, again that same post has some instructions for getting your mouse wheel working again. However, I found the lines in the config file to be slightly different than posted for my Kubuntu 7.04 install – each of mine used option, not Options, as posted.
That’s it! Trail your mouse to the edge of your windowed VM and watch as it magically transitions back to host OS control, or copy some code from your development work in Kubuntu and paste it into your email program back on Windows.