Hi, AakashJ
I fixed the problem by removing the point before the word of encoding. I am not sure why there is "." before the encoding line.
The original content of preferences.ini file is as follows.
.encoding = "windows-1252" -> Just remove "." from here.
pref.vmplayer.fullscreen.autohide = "TRUE"
pref.eula.count = "1"
pref.eula0.product = "VMware Player"
pref.eula0.build = "1031769"
pref.mruVM0.filename = "C:\Documents and Settings\Administrator\My Documents\My Virtual Machines\Win7-001\Win7-001.vmx"
pref.mruVM0.displayName = "Win7-001"
pref.mruVM0.index = "0"