Ok, here are the problems I've experienced with grafpup 2.00 seamonkey under vmware:
1) the common problem with puppies under vmware the screen goes black, when you have to choose your screen resolution with xorg and when you have to choose whetver you want to save your settings to hdd or cd. Anyway, that's not so important because it seems to be vmware problem.
2) The list of software available for instalation is loaded really slow (same problem for live cd and hdd install)
3) xmms installed with default package manager does not seem to appear in the menu (yup, I tried to refresh menu and restart lxpanel).
4) When installing grafpup to hdd home directory is not created (yup, I saw some posts in this forum about this problem).
5) After installation you are automatically logged in as root in text mode. Not really good for linux newbies I guess. I gess instead of that setup should be automatically run just as when live cd is loaded.
7) When trying to open pup (i.e. dotpups.de -> dotpups -> Internet -> Bluefish-1.0.7.pup) whith grafpup user it says that you have to be root and quits.
8) pups and pets installed not with the default package manager do not appear in the menu anywhere.

Other minor problems:
1) How do I enable the use of sudo for grafpup user (or any other normal user)?
2) The default title bars are really very small.
3) Default shell also s**ks quite a bit (just as in every puppy)...
4) The web browser could also be by default among the icons on the desktop
5) How do I edit the menus?