VMWare Tools fails to install or update in VM

1. Go to http://softwareupdate.vmware.com/cds/vmw-desktop/player/
2. Select latest version (7.1.2 as of this writing)
3. > your host OS
4. > Packages
5. > your guest OS

Download the file to your host OS, untar and execute. This then silently installs the VMware Tools ISO Image into the VMware Player working directory.  

Now try re-installing VMWare Tools as usual.