Step 1 - echo never > /sys/kernel/mm/transparent_hugepage/enabled
Step 2 - echo never > /sys/kernel/mm/transparent_hugepage/defrag
Stolen from here. Funny, they claim some of their Windows VMs are fine, just Linux guests. Worked for me, don't know what "transparent_hugepage" is.
You can also disable it from grub, click the here link for what to use. I edited my grub file and ran update-grub. To bad, you can't disable it in VMware Player, the default setting isn't always, only for apps that can use it.