according to VMware's knowledge base, the actual solution depends on the Linux distro and release, in RHEL 5.3 I usually edit /etc/grub.conf and append this parameters to the kernel entry: divider=10 clocksource=acpi_pm
Then enable NTP, disable VMware time synchronization from vmware-toolbox and finally reboot the VM
A complete table with guidelines for each Linux distro can be found here:
TIMEKEEPING BEST PRACTICES FOR LINUX GUESTS http://kb.vmware.com/selfservice/microsites/search.do?language=en_US&cmd=displayKC&externalId=1006427