I have been using Ext2IFS driver on different windows version starting in XP, then Vista, now Windows 7.

I installed the latest VMWare Server 2 and tried to open up my old VM. Got an error like

VMware Workstation cannot open one of the virtual disks needed by this VM because it is larger than the maximum file size supported by the host file system. Some remote file systems do not support files larger than 2 GB, even though the file system on the server might.
Cannot open the disk ‘PATH_TO_DISK’ or one of the snapshot disks it depends on.
Reason: The file is too large.

I used the solution found in this thread.

Add

diskLib.sparseMaxFileSizeCheck= "false"

to your VMX file. Viola!