/proc restrictions doesn't have anything to do with vmware. I've been running vmware with grsec for years now with no problems. Did you install vmware tools on the guest OS yet? That'll improve performance.
look ... try ONLY get first boot screen of any livecd in vmware
(vmware tools aren't be installed into only livecd vm machine)
with restrictions and w/o
you will amazed
DISABLING proc restrictions improving speed very much - I thinking 3x - 5x