I have a feeling vmware can be a bit dodgy about accessing a DVD drive as you would on a standard PC. Something to do with certain hardware compatibility and/or how vmware was installed in the first place.
You seem to be having a problem that putting an install disk in the drive does not automatically run the installer.
Just put the Cd/DVD install into the drive, can you see the drive in windows explorer? If so just double-click whatever might be in the root of the DVD/CD that looks as if it should start automatically when the drive is loaded. Could be a setup.exe typically, but there are other possibilities.
If you cannot find the install disk, well there's your first problem to solve.