Using the original procedure, I found it difficult to install VMware Tools correctly. I needed to run the VMware Toolbox so that the timing problem noted in NTP Saga Ends is resolved by setting the Time Synchronization as show below:
The primary modification to the procedure is in the choice of packages initially loaded when creating the OS image:
Using RHEL 5.4 DVD,
English (English).US English.eth0:eth1:eth2:Australia/Sydney with System clock uses UTC.********.Customize now.Base System, leave Base as the only selected option.