VMware one day offered an update (8.0.1 build-528992 my current version) from 8.0. I accepted it, because updates usually fix problems. However not in this case...

Previously it worked very well. Now, it still "works" but the one glitch I'm getting makes it too hard to deal with. This screenshot will explain my problem:

As you can see, my virtual PC is not resizing correctly. (This happens with any operating system), autofit guest just doesn't work - it only results in things like this happening. Thanks to the tools it becomes very hard to NOT autofit guest.

I've tried uninstalling 8.0.1 completely and installing 8.0 again but with the same results. I don't really understand what the new update has done to VMware Workstation or to my virtual machines. I do believe this isn't VMware Workstation's direct fault but from VMware Tools, which would explain why going back to 8.0 didn't work since VMware tools has its own updates.

How can I fix this?

The host is running Windows 7 Ultimate 64-bit.