At the top of the VM there should be a menu. I don't have VMWare workstation so I can't tell you what it looks like, but on VMWare Player it's called "Virtual Machine". In that menu is an option called "Install VMWare Tools".
When you click this, it will mount a virtual cd in the OS. It should autorun, but if not you should be able to open the mounted virtual cd and run the installation script.
This has nothing to do with your linux installation cd/dvd.