If you feel like the mouse movement within the direct console of a Window 2008R2 or Windows7 Vitual machine is sluggish then the chances are you are using the SVGA video driver supplied by VMware Tools and not the smoother performing WDDM video driver. In order to establish if you are running on the “Standard VGA Graphics Adapter” you can take a look in device manager:
To update the display adapter driver to the VMware WDDM driver browse to the following location and load the WDDM Video Driver:
C:\Program Files\Common Files\VMware\Drivers\wddm_video
Please note that a reboot of the virtual machine is required to enable the new video driver.