Solution:
- Navigate to \etc\x11\xorg.conf
- Make a backup of this file as \etc\x11\xorg.conf.orig
- Edit the file in KEdit - or any other editor
- Scroll to Section - "Screen"
- Edit Subsection "Display" with new resolution
Section "Screen"
Identifier "Screen0"
Device "VMware SVGA"
Monitor "vmware"
# Don't specify DefaultColorDepth unless you know what you're
# doing. It will override the driver's preferences which can
# cause the X server not to run if the host doesn't support the
# depth.
Subsection "Display"
# VGA mode: better left untouched
Depth 4
Modes "640x480"
ViewPort 0 0
EndSubsection
Subsection "Display"
Depth 8
Modes "1024x768"
ViewPort 0 0
EndSubsection
Subsection "Display"
Depth 15
Modes "1024x768"
ViewPort 0 0
EndSubsection
Subsection "Display"
Depth 16
Modes "1024x768"
ViewPort 0 0
EndSubsection
Subsection "Display"
Depth 24
Modes "1024x768"
ViewPort 0 0
EndSubsection
EndSection
Restart the box and you should have the new resolution