My Setup:
1. Host VM Ubuntu withd 2 NICs
2. Guest VM XP Pro serving http through IIS
3. Lan with DHCP exist at Host VM level
4. Host VM uses eth0
5. VMware Server

Getting it to work:

• For the Network Adapter config for the guest VM select the Bridged Network created during install of VMware server (eth1 in my case since eth0 is assigned to host VM)
• On host VM Ubuntu, goto System>Preferences>Network Connections
• Edit eth1
• Uncheck Available to all users
• Goto IPv4 Settings tab
• Change method to Link-Local Only
• Apply and close
• Refresh NICs
• Make sure ifconfig does not show an IP address from the subnet of your LAN on eth1
• Since guest VM XP is to serve http, it should have a static IP
• Goto guest VM
• Set TCP/IP for the Local Area Connection to a static IP within the subnet of the LAN
• Run ipconfig /refresh in command line
• Make sure ipconfig shows the correct IP info just set
• Make sure it can connect to internet
• Make sure Windows Firewall is not blocking http or port 80 (obvious step but it threw me for a loop for a little while)
• Now just check from host VM to see if a test webpage shows up