Well I'm a bit further. I have to run it as root to have access to the /dev/sda1 drive but that's ok I guess.
My problem now is that I grub is unhappy. I think this is because it can't find the right stuff?!?! I don't know. I'll google my error: Error 22

EDIT:
Seems that I need to add my linux drive in there so that grub can read the boot directory. There isn't a boot directory on this computer so...

Must say I'm a little unhappy about allowing access to both hard drives. I'm not sure if something bad could happen if it runs both?!?!
EDIT
Anyway here is the updated file for those who might need it.
Code:
vmx file->
scsi0:0.present = "TRUE"
scsi0:0.fileName = "Windows XP Professional.vmdk"
scsi0:0.deviceType = "rawDisk"
VMDK file->
# Disk DescriptorFile
version=1
encoding="UTF-8"
CID=c2495587
parentCID=ffffffff
createType="partitionedDevice"
# Extent description
RW 63 FLAT "Windows XP Professional-pt.vmdk" 0
RW 174867462 FLAT "/dev/sda" 63
RW 63 FLAT "Windows XP Professional-pt.vmdk" 63
RW 20482812 ZERO
RW 21168 ZERO
# The Disk Data Base
#DDB
ddb.virtualHWVersion = "7"
ddb.uuid = "60 00 C2 9b 03 02 5e 7b-8d 17 1c 3e fb d8 dd 31"
ddb.geometry.cylinders = "12161"
ddb.geometry.heads = "255"
ddb.geometry.sectors = "63"
ddb.geometry.biosCylinders = "12161"
ddb.geometry.biosHeads = "255"
ddb.geometry.biosSectors = "63"
ddb.adapterType = "buslogic"