I finally got the Vmware "C Header File" problem fixed. So everybody out there having the same problem, listen up. This was in RH9, by the way.
in /usr/src if there is not a /linux.2.4 or /linux.2.4.20-8 or something of that nature, then you MUST install the kernel development tools. This will install the kernel-source correctly. I tried just installing the kernel-source rpm, but it didnt work.
for you newbies, you can find the "add-remove applications" under system settings and run that. it's a nice graphical tool. scroll down and check the kernel development. fyi: you will need disk 2 and 3 if you are in RH9.
after you install that, head back to the /usr/src and you will see you a couple new folders. head into the /usr/src/linux.2.4.20-8/include and you will see all the good stuff that vmware is looking for, like the asm, net, and linux.
so when it asks, where are the c header files? [/usr/src/linux/include]
obviously that is not the right place, just type in the path correctly, and you will be rockin! hope that helps!