2. Today, when I tried to open Fusion, I'm getting the Virtual machine library window - but I cannot get to the Windows 7 desktop. I've never seen this before. Wonder if it's related to the license issue mentioned above.
It is in no way related to the Microsoft Licensing Issue as it has absolutely nothing whatsoever to do with the basic functionality of VMware Fusion or the mechanics behind a running Virtual Machine sans an OS. Whatever the Microsoft Licensing Issue is, it is between you and Microsoft and has nothing to do with VMware Fusion per se.
As far as any VMware Fusion related issue then... To help figure out what is what, the best way to provide comprehensive diagnostic information is to use the "Collect Support Information" command from the VMware Fusion (menu bar)> Help > Collect Support Information and then attach the .tgz file it created on your Desktop to a reply post.
Note: Use the "Use advanced editor" link in the upper right corner of the normal reply window to bring up the Advanced Editor where you'll be able to attach files via the Choose File button or Browse button (depending on the Browser) above the Post Message button!